Making the Transition from WCM to CEM - and Why Resistance is Futile
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This document summarizes a presentation by Tim Walters on the transition from web content management (WCM) to customer experience management (CEM). Some key points discussed include: - WCM focused on publishing content to websites while CEM aims to ensure positive experiences across all customer touchpoints. - CEM requires an "omnichannel" approach with content tailored for different customer segments and stages of their journey. - Providing outstanding customer experiences is now critical for business success given digital disruptions and empowered consumers. - Many companies have struggled to improve customer experience metrics, playing "not to lose" rather than to win in the marketplace.
Making the Transition from WCM to CEM - and Why Resistance is Futile
- 1. The Transition From WCM to CEM Magnolia Conference 2014 Basel | 25 June 2014 Tim Walters, Ph.D. | Partner, Principal Analyst twitter: tim_walters [email protected] www.digitalclaritygroup.com
- 2. The Transition From WCM to CEM Magnolia Conference 2014 Basel | 25 June 2014 Tim Walters, Ph.D. | Partner, Principal Analyst twitter: tim_walters [email protected] www.digitalclaritygroup.com > but inescapable, irresistible and utterly imperative >
- 3. DCG helps business leaders navigate the digital transformation and create competitive advantage from disruption. 3 About Digital Clarity Group @$m_walters @just_clarity
- 5. 5 Yearning to kill the messenger
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- 9. 9 The compression of time and space
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- 13. § Accelerated flow of information § Democratized production of information § Dissolved monopoly over information “As the industrial revolution was defined by radical efficiency in production, the digital revolution is defined by radical efficiency in information transmission” -- Mike Aruz (e.g., Uber, Airbnb) 13 The deformation of information
- 14. 14 What do consumers think of us? @$m_walters
- 15. Twitter trumps condiments 15 Source: h@p://www.newmediaandmarke$ng.com/brands-‐have-‐to-‐master-‐complaint-‐management/customer-‐complaints-‐561
- 16. Only 16 1% feel their expecta$ons for good customer service are always met Source: Haaris Interac$ve survey of North American consumers, 2011. Commissioned by RightNow. @$m_walters
- 17. 17 Say they have switched business to a competitor due to poor customer experience Source: Haaris Interac$ve survey of North American consumers, 2011. Commissioned by RightNow. @$m_walters
- 18. 18 Say they will pay a premium for great customer experience Source: Haaris Interac$ve survey of North American consumers, 2011. Commissioned by RightNow. @$m_walters
- 19. 19 Source: Okeeffe & Company survey of 1,342 senior execu$ves, 2012. Commissioned by Oracle. Global executives say the cost of not providing “positive, consistent, and brand relevant experiences” is 20% of total revenue@$m_walters
- 20. 20 $1.25 million per year @$m_walters Source: h@p://www.weirdworldfacts.com/smart-‐dogs-‐with-‐amazing-‐jobs/
- 21. $89 billion“is lost by US retailers each year because of customer defection or abandoned purchases due to poor experiences” 21 IBM says . . . Source: www.mycustomer.com/feature/experience/jim-‐glazer-‐ibm-‐store-‐s$ll-‐pivotal-‐customer-‐experience/165159
- 22. How much is at stake? $5,900,000,000,000 ($5.9 trillion) 22 Source: Accenture, 2013 Global Consumer Pulse Research. Photo: h@p://www.t-‐na$on.com/free_online_ar$cle/most_recent/ train_like_a_man_5_the_real_paleo_exercise
- 23. #CEM isn’t the Next Big Thing. It is the Next Only Thing. #provocation 23
- 24. 24 What do consumers want from us? @$m_walters
- 25. of consumers are frustrated by site content that has nothing to do with their interests 25 Source: Harris Interac$ve survey of 2,091 U.S. consumers, 2013. @$m_walters
- 26. 79% Companies “asking same ques$ons or marke$ng same offer” across channels Sources of consumer frustration 65% Inconsistent offers or content 79% Companies “se_ng false promises” Source: Accenture Global Consumer Pulse Report, 2014. @$m_walters
- 27. of consumers say that personalization influences what they purchase – 25% say the influence is “significant” 27 Source: Vanson Bourne survey of US consumers, 2013. @$m_walters
- 28. 28 Consumers expect insight Source: Dynamic Markets study for Experian, January 2012. “Understanding” means, e.g., “taking account of preferences, purchase history, and other provided information.” 84% said they would no longer buy from a company that failed to “understand.” @$m_walters
- 29. We are anxious about privacy . . . but we want companies to offer relevant experiences based on our wants, needs, and tasks. 29 Source: h@p://sapinsider.wispubs.com/Assets/Ar$cles/2014/January/SPI_Feature_From-‐CRM-‐to-‐the-‐Customer-‐Managed-‐Rela$onship
- 30. #CEM means: Embracing the shift from #CRM to #CMR – customer managed relationshps. (Thanks to @collsdad) 30 Source: h@p://sapinsider.wispubs.com/Assets/Ar$cles/2014/January/SPI_Feature_From-‐CRM-‐to-‐the-‐Customer-‐Managed-‐Rela$onship
- 31. 31 A strategic inflection point Source: Based on Andy Grove, Only the Paranoid Survive, 1996 @$m_walters
- 32. “Strategic inflections can come from anywhere: new technologies, new competition, new regulations, new customer values and habits, etc. – anything that has a significant impact on the business itself or the industry as a whole.” – Andy Grove 32
- 33. 33 CEM is today’s “fundamental” SI Business success STATUS QUO Business failure § Digital disruptions § Era of empowered consumers § Basic shift in the business environment § Impacts every firm, regardless of industry Impact: Failure to provide superior customer experiences leads to irrelevance and business decline @$m_walters
- 34. 34 Source: Forrester’s Website User Experience Reviews, November 1999 through January 2012 WCM was hard
- 35. 35 Source: Forrester’s Website User Experience Reviews, November 1999 through January 2012
- 36. #CEM is not just somewhat harder WCM. 36
- 37. 37 WCM is old paradigm Source: Based on Andy Grove, Only the Paranoid Survive, 1996 @$m_walters § Web-centric § Page/publishing mentality § Insufficient tagging § Not “minimal” enough
- 38. 38 COPE = Create Once Publish Everywhere Content Web Print Social App RSS Video Thanks to Deane Barker. See: h@p://www.slideshare.net/blendinterac$ve/copeing-‐mechanism-‐the-‐peril-‐and-‐promise-‐of-‐create-‐once-‐ publish-‐everywhere Deane Barker, Blend Interac$ve Karen McGrane, karenmcgrane .com
- 39. 39 CEM is COPE-IER = COPE for segments, in journey stages Content Social Video Print Web App RSS Thanks to Deane Barker. See: h@p://www.slideshare.net/blendinterac$ve/copeing-‐mechanism-‐the-‐peril-‐and-‐promise-‐of-‐create-‐once-‐ publish-‐everywhere A B C D B C B C
- 40. “We can’t afford to be thinking about creating content for any one platform. We can’t be thinking about crafting a website. Instead, we have to think about how are we going to put more effort into crafting the description of our content, how are we going to put more effort into explaining all the different bits of our assets. And what that’s going to allow us to do is reuse our content more effectively and get more value out of it.” – Nic Newman, BBC 40 It’s all about Adaptive Content Thanks to Karen McGrane See: h@p://karenmcgrane.com/2012/09/04/adap$ng-‐ourselves-‐to-‐adap$ve-‐content-‐video-‐slides-‐and-‐ transcript-‐oh-‐my/once-‐publish-‐everywhere
- 41. § Structure § Purity § Intelligence 41 Omnichannel CEM needs content with:
- 42. STRUCTURE § MRU (“minimum reasonable unit,” re Deane Barker) § Discrete, flexible, agile, freely combinable, reusable experience assets 42
- 43. PURITY § WYSIWYG? Seriously? § Create messages, narrative elements, “engagement legos” – not pages, print, or any other format 43
- 44. 44 Thanks to Deane Barker. See: h@p://www.slideshare.net/blendinterac$ve/copeing-‐mechanism-‐the-‐peril-‐and-‐promise-‐of-‐create-‐once-‐ publish-‐everywhere
- 45. INTELLIGENCE § Experience architecture(s) § Taxonomy, metadata, tagging § Governance § Describe/track/verify how, when, where, why assets have been combined/deployed, and to what effect 45
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- 47. § Accenture surveyed over 13,000 consumers in 33 countries about 10 industries and determined: – Despite investments and initiatives, no CX metric “has improved consistently in the past five years.” – All metrics “lost ground in 2013” – Companies “have been playing not to lose” 47 Answer: You suck Source: Accenture Global Consumer Pulse Report, 2014. @$m_walters
- 48. 48 Can “CX” be “M”d? Source: h@p://www.bedeckhome.com/sloane-‐towels-‐2-‐colours.html
- 49. § Customer experience (CX) is how customers perceive the totality of a their interactions with a company or brand. Note that in this definition, "customer" refers equally to prospects – those who have not yet conducted a transaction with the company – and that the “totality” of interactions includes all channels and touch points over the entire life of the relationship. § As a business discipline, customer experience management (CEM) refers to the strategies, processes, skills, technologies, and commitments that aim to ensure positive and competitively outstanding customer experiences. § With reference to technology, CEM includes the array of software tools that organizations use to create, store, deploy, analyze, and optimize the aggregations of digital assets that make up the user experiences on digital channels. 49 Unpacking CX and CEM @$m_walters
- 50. #CEM means: Judging CEM tech and practices from the customer’s (ad)vantage point. 50
- 51. 51 Johanna Maria Christina Snel Three vectors of experience § Environment – The thing/product experienced § Encounter – The interaction between the product and person § Effect – A person’s response to the encounter Source: h@p://books.google.com/books/about/For_the_Love_of_Experience.html?id=u98ZkgEACAAJ
- 52. You create experiences (environments) that are experienced (interaction) and form an experience (subjective perception). 52 In short:
- 53. We say that #CEM is about the effect (perception), but we should realize that it is about the environment (product). (Because the things we offer to be experienced can be managed, but the reaction cannot be.) 53
- 54. Customer insight + brand story = experience assets Experience assets + interaction = customer perception = CX 54
- 55. #CEM means: Managing the delta between your intent and the customer’s perception. 55
- 56. 56 You can’t do it alone. Source: h@p://silence-‐without.blogspot.de/2010_12_01_archive.html
- 57. “CEM is so new, hard, and complex that nearly all organizations must draw on third-party service providers to provide or supplement skills in research, strategy, design, technology, operations, and much more. In short, service provider partners increasingly provide an indispensable ingredient in any CEM endeavor.” 57
- 58. § Touchpoints (web site, app, call center) are too specific § Customer lifecycle is too unpredictable § Customer journey is just right – it combines end-to-end experience with clear outcomes and team responsibilities 58 Where to start? @$m_walters
- 59. 59 Selected journeys (McKinsey)
- 60. § Identify customer goals/needs § Map the journey § Determine/assign responsibilities § Measure current effectiveness/satisfaction § Identify flows and gaps for social support § Organize and/or network team(s) for complete journey § Refine and optimize § Learn, repeat, expand 60 The road to CEM reality begins tomorrow (or anyway, after the party) @$m_walters
- 61. 61 “You may hate gravity, but gravity does not care.” -- Clayton Christensen
- 62. Tim Walters | Partner, Principal Analyst @tim_walters [email protected] www.digitalclaritygroup.com