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Creating CustomerCreating Customer
Centric CultureCentric Culture
for yourfor your
organisationorganisation
© Janne Ohtonen 2013
http://linkedin.com/in/janneohtonen
• Creating Customer Centric Culture –overview
• Supporting elements for customer centric culture
• Customer Centric Transformation
• Effect of cost cutting vs. Effect of improving customer experience
• Organisational Resilience Levels
• Becoming a customer value leader
• Customer Experience Innovation (CEI) Framework
• Innovation is a critical part of customer centricity
You are in the customer experience business –
whether you know it or not.
For most companies, customer experience is the single greatest
predictor of whether customers will return – or defect to a competitor.
© Janne Ohtonen 2013 - http://linkedin.com/in/janneohtonenPage  2
Content
Source: Forrester Research, 2012
Customer Centric TransformationCustomer Centric Transformation
Page  3
The traditional
perspective is partly
valid, but also quite
complicated...
And actually,
the customer is
missing from this
customer centric transformation model!
Here the
agility of
change is lost
and the
initiative
becomes slow,
expensive and
very
cumbersome.
© Janne Ohtonen 2013 - http://linkedin.com/in/janneohtonen
However, customer needs toHowever, customer needs to
be in the centre of all actionbe in the centre of all action
o Strategy practices aligned to business processes
o Customer understanding practices (wants, needs, motivations)
o Value adding design and project management practices
o Customer centric measurement practices (balanced scorecard,
metrics, etc. focusing on successful customer outcomes)
o Customer centric governance, culture and leadership
o Human resources & IT supporting creating customer outcomes
o Training people to customer centric techniques and terms
o Creating customer value through marketing and branding
o Increasing customer centricity and process maturity
Page  4 © Janne Ohtonen 2013 - http://linkedin.com/in/janneohtonen
Supporting elements for customer centric cultureSupporting elements for customer centric culture
© Janne Ohtonen 2013 - http://linkedin.com/in/janneohtonen
Source: NextTen
Page  5
OrganisationalOrganisational
Resilience LevelsResilience Levels
Page  6
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 4
 Company views customers through the lens of their own goods and
services.
 They assure that customers are centre of their business, but they are
very rigid.
 Systematically gather customer information and channel it to internal
departments.
 Though they understand customers, they still see the world through
their offering and are organised by geography or product.
 They focus on the problems their customers are trying to solve.
 But they still match what customers want with what they
themselves produce.
 Focus on customer wants and problem base. Level 4 company is more
attached to producing solutions to those problems than it is to the
products and services it offers. They deal well with their
organisational barriers. They talk about the Succesful Customer
Outcomes!
Source: Ranjay Gulati
© Janne Ohtonen 2013 - http://linkedin.com/in/janneohtonen
Becoming a customer value leaderBecoming a customer value leader
TIME
HARNESSINGCUSTOMERVALUE
© Janne Ohtonen 2013 - http://linkedin.com/in/janneohtonenPage  7
Customer ExperienceCustomer Experience
Innovation (CEI) MethodInnovation (CEI) Method
Page  8
DISCOVER
PLAN
IMPLEMENT
Priority &
Importance
Discovery
Priority &
Importance
Discovery
Discover
Customer
Interactions
Discover
Customer
Interactions
Discover
Decision Points
Discover
Decision Points
Discover
Internal
Interactions
Discover
Internal
Interactions
Identify
Successful
Customer
Outcomes
Identify
Successful
Customer
Outcomes
Plan
Implementation
Tranches
Plan
Implementation
Tranches
IterateIterate
Develop Action Plan
to improve
Develop Action Plan
to improve
Customer &
Organisation
Journey
Mapping
Customer &
Organisation
Journey
Mapping
Customer
&
Stakeholder
Discovery
Customer
&
Stakeholder
Discovery
Plan Customer Centricity
Roadmap
Plan Customer Centricity
Roadmap
Implement
”Quick Wins”
Tranche
Implement
”Quick Wins”
Tranche
Implement
”Customer Value”
Tranche
Implement
”Customer Value”
Tranche
Implement
”Advanced Customer
Value”
Tranche
Implement
”Advanced Customer
Value”
Tranche
Plan metrics based on
customer outcomes
Plan metrics based on
customer outcomes
Source: NextTen
© Janne Ohtonen 2013 - http://linkedin.com/in/janneohtonen
2. Adjacent Innovation
 Low risk, small rewards
 Using existing capabilities
 Actually not innovation at
all…
 ”Offer the same old SIM
card plan with a new
name and package”
1. Incremental ”Innovation”
 Balanced, medium risk
and rewards
 Leverage current
offerings, brand,
distribution and sales
activities
 ”Offer new SIM plans with
new features (mins, etc.)”
 High risk, large rewards
 Creating new capabilities
 Distruptive improvements
 Brings the best profits
 ”Offer new sercices that
has fully synced
information across media”
3. Disruptive Innovation
Innovation is a critical part of customer centricityInnovation is a critical part of customer centricity
Page  9
Same as present Adjacent to New to the
present company
New to the
company
Adjacent to
current offering
Same as
current offering
PRODUCT/SERVICE/TECHNOLOGY
TARGET CUSTOMERS
1. INCREMENTAL
“INNOVATION”
2. ADJACENT
INNOVATION
3. DISTRUPTIVE
INNOVATION
© Janne Ohtonen 2013 - http://linkedin.com/in/janneohtonen
Summary of customer centric cultureSummary of customer centric culture
• Creating customer centric culture into an organisation requires
the organisation to view everything they do from the customer
perspective.
• Customer Centricity has to be driven as strategic business
initiative.
• With right kind of approach, training and change management it
is possible to see the first positive results within months.
• Both research and organisation specific ROI calculations proof
that customer centricity has direct impact to revenues and
profits.
• I am one of the world’s leading experts for practical
implementation of customer centric culture.
Page  10
“You should never put aside the need for profits when you fund
customer experience projects.”
– Harley Manning, Forrester Research, 2013.
© Janne Ohtonen 2013 - http://linkedin.com/in/janneohtonen
CONTACT ME FORCONTACT ME FOR
PRACTICALPRACTICAL
IMPLEMENTATIONIMPLEMENTATION
OF CUSTOMEROF CUSTOMER
CENTRIC CULTURE!CENTRIC CULTURE!
http://linkedin.com/in/janneohtonen

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Creating customer centric culture for your organisation

  • 1. Creating CustomerCreating Customer Centric CultureCentric Culture for yourfor your organisationorganisation © Janne Ohtonen 2013 http://linkedin.com/in/janneohtonen
  • 2. • Creating Customer Centric Culture –overview • Supporting elements for customer centric culture • Customer Centric Transformation • Effect of cost cutting vs. Effect of improving customer experience • Organisational Resilience Levels • Becoming a customer value leader • Customer Experience Innovation (CEI) Framework • Innovation is a critical part of customer centricity You are in the customer experience business – whether you know it or not. For most companies, customer experience is the single greatest predictor of whether customers will return – or defect to a competitor. © Janne Ohtonen 2013 - http://linkedin.com/in/janneohtonenPage  2 Content Source: Forrester Research, 2012
  • 3. Customer Centric TransformationCustomer Centric Transformation Page  3 The traditional perspective is partly valid, but also quite complicated... And actually, the customer is missing from this customer centric transformation model! Here the agility of change is lost and the initiative becomes slow, expensive and very cumbersome. © Janne Ohtonen 2013 - http://linkedin.com/in/janneohtonen
  • 4. However, customer needs toHowever, customer needs to be in the centre of all actionbe in the centre of all action o Strategy practices aligned to business processes o Customer understanding practices (wants, needs, motivations) o Value adding design and project management practices o Customer centric measurement practices (balanced scorecard, metrics, etc. focusing on successful customer outcomes) o Customer centric governance, culture and leadership o Human resources & IT supporting creating customer outcomes o Training people to customer centric techniques and terms o Creating customer value through marketing and branding o Increasing customer centricity and process maturity Page  4 © Janne Ohtonen 2013 - http://linkedin.com/in/janneohtonen
  • 5. Supporting elements for customer centric cultureSupporting elements for customer centric culture © Janne Ohtonen 2013 - http://linkedin.com/in/janneohtonen Source: NextTen Page  5
  • 6. OrganisationalOrganisational Resilience LevelsResilience Levels Page  6 LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4  Company views customers through the lens of their own goods and services.  They assure that customers are centre of their business, but they are very rigid.  Systematically gather customer information and channel it to internal departments.  Though they understand customers, they still see the world through their offering and are organised by geography or product.  They focus on the problems their customers are trying to solve.  But they still match what customers want with what they themselves produce.  Focus on customer wants and problem base. Level 4 company is more attached to producing solutions to those problems than it is to the products and services it offers. They deal well with their organisational barriers. They talk about the Succesful Customer Outcomes! Source: Ranjay Gulati © Janne Ohtonen 2013 - http://linkedin.com/in/janneohtonen
  • 7. Becoming a customer value leaderBecoming a customer value leader TIME HARNESSINGCUSTOMERVALUE © Janne Ohtonen 2013 - http://linkedin.com/in/janneohtonenPage  7
  • 8. Customer ExperienceCustomer Experience Innovation (CEI) MethodInnovation (CEI) Method Page  8 DISCOVER PLAN IMPLEMENT Priority & Importance Discovery Priority & Importance Discovery Discover Customer Interactions Discover Customer Interactions Discover Decision Points Discover Decision Points Discover Internal Interactions Discover Internal Interactions Identify Successful Customer Outcomes Identify Successful Customer Outcomes Plan Implementation Tranches Plan Implementation Tranches IterateIterate Develop Action Plan to improve Develop Action Plan to improve Customer & Organisation Journey Mapping Customer & Organisation Journey Mapping Customer & Stakeholder Discovery Customer & Stakeholder Discovery Plan Customer Centricity Roadmap Plan Customer Centricity Roadmap Implement ”Quick Wins” Tranche Implement ”Quick Wins” Tranche Implement ”Customer Value” Tranche Implement ”Customer Value” Tranche Implement ”Advanced Customer Value” Tranche Implement ”Advanced Customer Value” Tranche Plan metrics based on customer outcomes Plan metrics based on customer outcomes Source: NextTen © Janne Ohtonen 2013 - http://linkedin.com/in/janneohtonen
  • 9. 2. Adjacent Innovation  Low risk, small rewards  Using existing capabilities  Actually not innovation at all…  ”Offer the same old SIM card plan with a new name and package” 1. Incremental ”Innovation”  Balanced, medium risk and rewards  Leverage current offerings, brand, distribution and sales activities  ”Offer new SIM plans with new features (mins, etc.)”  High risk, large rewards  Creating new capabilities  Distruptive improvements  Brings the best profits  ”Offer new sercices that has fully synced information across media” 3. Disruptive Innovation Innovation is a critical part of customer centricityInnovation is a critical part of customer centricity Page  9 Same as present Adjacent to New to the present company New to the company Adjacent to current offering Same as current offering PRODUCT/SERVICE/TECHNOLOGY TARGET CUSTOMERS 1. INCREMENTAL “INNOVATION” 2. ADJACENT INNOVATION 3. DISTRUPTIVE INNOVATION © Janne Ohtonen 2013 - http://linkedin.com/in/janneohtonen
  • 10. Summary of customer centric cultureSummary of customer centric culture • Creating customer centric culture into an organisation requires the organisation to view everything they do from the customer perspective. • Customer Centricity has to be driven as strategic business initiative. • With right kind of approach, training and change management it is possible to see the first positive results within months. • Both research and organisation specific ROI calculations proof that customer centricity has direct impact to revenues and profits. • I am one of the world’s leading experts for practical implementation of customer centric culture. Page  10 “You should never put aside the need for profits when you fund customer experience projects.” – Harley Manning, Forrester Research, 2013. © Janne Ohtonen 2013 - http://linkedin.com/in/janneohtonen
  • 11. CONTACT ME FORCONTACT ME FOR PRACTICALPRACTICAL IMPLEMENTATIONIMPLEMENTATION OF CUSTOMEROF CUSTOMER CENTRIC CULTURE!CENTRIC CULTURE! http://linkedin.com/in/janneohtonen

Notas do Editor

  1. The whole process begins from actually creating some value to customers that are willing to pay for it. Then you deepen that with capitalizing on current customers, creating new value and capitalizing brand also. Doing all these things will move you towards becoming a customer value leader. Capitalize on the customer as an asset: CEI Method ’ s process analysis for cost reduction Get customers to buy more from you (deeper customer relationship) Spend less money on customer acquisition and retention You can charge for premium and increase margin Innovate new value to customers: Find new revenue sources Widen your offering on the whole process that customer is involved with Take new markets, increase customer loyalty Customers focus on subset of offerings Figure out target customer ’ s consideration set Serve that set Customers weight the sources for value unevenly Weighting for price vs. relational vs. performance value Differences between products / services are irrelevant Customer ’ s perception on product or service matters, so manage it Your price vs. relational vs. performance value needs to be on a certain level for customer not to reject it. Compare to competitors: perceived value, not the features! Understand the markets (that is your customers) Listen to the rhythm of market, it is more complicated than traditional product lifecycle models let you believe! Focus on interactions of customers and competitors. Capitalize on the brand as an asset: Affects business success in long-term Eases way to get on to new markets Protects the company against negative effects when something goes wrong Endorsement even through people who do not purchase.