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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
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.
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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
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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 !
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
16. Best Practices in in Experimenting with Emerging Channels, Charlene Li, Altimeter 16September 10, 2015
What The Most Successful Brands Do Well
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Rigorously Define Success and Failure
18. Best Practices in in Experimenting with Emerging Channels, Charlene Li, Altimeter 18September 10, 2015
Experimenting with Snapchat
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 do 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.