This presentation on Customer Experience Management was delivered at The Social CRM Conference in Singapore on the 21/01/2014. The event was attended by Senior Marketing Executives from around the Asia Pacific and Japan region.

1. SOCIAL CUSTOMER
EXPERIENCE MANAGEMENT
Social CRM 2014
21st of January, 2014 | Sheraton Tower, Singapore
Nicholas Kontopoulos
Senior Director, Global Product Marketing
SAP Solutions for Sales, Marketing and Customer Service

2. OP + NT = EOP

3. This is the dawn of Generation C.
Where "C" represents a connected
society based on interests and
behavior. Gen C is not an age group -ITS A WAY OF LIFE.
- Brian Solis, author and digital analyst

4. THERE HAS BEEN A

5. CUSTOMERS ARE
NO LONGER PASSIVE
They are now armed to the teeth.

6. EVANTUBE HD
ENGAGING THE
BUYERS OF
TOMORROW

7. EMPOWERED
CUSTOMERS ARE
Digitally Connected
79%
of customers spend at least 50% of
total shopping time researching
products online.
Socially Networked
53%
of customers abandoned an instore purchase due to negative
online sentiment.
Better Informed
59%
of customers are willing to try a
new brand to get better customer
service.

8. EVERY MINUTE
OF EVERYDAY
SOURCE: DOMO, INC.
48 hrs
3,125
$272,070
217
3,600
100,000
347
204,167,667
47,000
571
2,000,000
34,722
2,083
684,478
61,141
of YouTube uploads
new mobile web users
Wordpress blog posts
new websites
Foursquare check-ins
Flickr photos
Instagram photos
Email messages
Google queries
Facebook shares
Consumers spend
Twitter tweets
Apple app download
Facebook likes
hours of music uploaded

9. THIS CHANGES THE RULES
FOR MARKETERS
2.4 BILLION
brand-related conversions
happen in America everyday.
SOURCE – KELLER FAY GROUP

10. THIS CHANGES THE RULE FOR MARKETERS.
IN ASIA PACIFIC,
59% OF
CONSUMERS
COMMENT ABOUT
BRANDS ONLINE.

11. AND IT RAISES THE STAKES FOR
CUSTOMER SERVICE
59%
of customers are willing to
try a new brand to get
better customer service.
SOURCE – AMERICAN EXPRESS GLOBAL CUSTOMER BAROMETER

12. IT CREATES A NEW KIND OF
THINKING AROUND SALES
57%
of the buying process is
completed before a first
interaction with sales.
SOURCE – CUSTOMER EXECUTIVE BOARD

13. WHILE CUSTOMER EXPECTATIONS
CONTINUE TO RISE
71%
of customers don’t think
companies are doing anything
to keep their business.
SOURCE – AMERICAN EXPRESS GLOBAL CUSTOMER BAROMETER

14. DIGITAL DARWINISM:
When technology and society evolve
faster than the ability for companies to
adapt.
- Brian Solis

15. COMPANIES ARE
STRUGGLING TO
BREAKTHROUGH
& ENGAGE THEIR
CUSTOMERS.

18. OP + NT = EOP

19. DUDE, IT’S NOT ALL
ABOUT THE
TECHNOLOGY…

20. THERE IS
NO SINGLE
SILVER BULLET
SOLUTION

21. 21ST CENTURY
CUSTOMERS
REQUIRE A
21ST CENTURY
MANAGEMENT
RESPONSE

22. REINVENTING MANAGEMENT
FOR THE 21ST CENTURY
REINVENTING
History Lesson on Management 1.0 MANAGEMENT
FOR THE 21ST
CENTURY
– GARY HAMEL
An excerpt from the University of Phoenix Distinguished Guest
Video Lecture Series

23. HISTORY LESSON ON
MANAGEMENT 1.0
1890:
90% of the then developed world worked
in agriculture & the average manufacturing
firm employed 4 employees.
1915:
Ford was making a ½ million cars and
US Steel was the first company in history to
urnover $1b a year.

24. HISTORY LESSON ON
MANAGEMENT 1.0
1920:
By this time most of the tools for modern
management have been created:
Pay for
Performance
Capital
Budgeting
Task
Design
Divisionalization
Since then the way we manage has hardly changed.
Brand
Management

25. 19TH CENTURY
ENGAGEMENT
Sales & Marketing Funnel
Awareness
Interest
Desire
Action

26. CUSTOMERS REQUIRE A NEW
21ST CENTURY ENGAGEMENT MODEL
DRIVEN BY SOCIAL
SHARE
COMPARE
TRIGGER EVENT
RESEARCH
SHOP
PURCHASE

27. OP + NT = EOP

28. If you keep on doing what
you’ve always done, you’ll keep on
getting what you’ve always got.
- W L Bateman

29. WE NEED TO RETHINK
OUR MARKETING & SALES
STRATEGIES.
LET’S START WITH
BINNING THE CONCEPT OF…
a
go-to-market strategy
and replace it with
A GO-TO-CUSTOMER STRATEGY
© 2011 SAP AG. All rights reserved.
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29

30. WHICH ACRONYM
do I start with?
SCRM
CX
Social
CEM
CRM

31. Social CRM is a philosophy and a business
strategy, supported by a technology
platform, business rules, workflow,
processes and social characteristics,
designed to engage the customer in a
collaborative conversation in order to
provide mutually beneficial value in a
trusted and transparent business
environment. It’s the company's response
to the customers' ownership of the
conversation.
- Paul Greenberg

32. CUSTOMER
EXPERIENCE
MANAGEMENT
© 2011 SAP AG. All rights reserved.
32

33. CUSTOMER
EXPERIENCE
The customer’s perceptions and related
feelings caused by the one-off & cumulative
effect of interactions with a supplier’s
employees, systems, channels or products.
Source: Gartner

34. “Or, the aggregated
memories of every
touch a customer has with
your company”

35. CUSTOMER
EXPERIENCE
MANAGEMENT
The practice of designing and reacting to
customer interactions to meet or exceed
customer expectations to increase customer
satisfaction, loyalty and advocacy.
Source: Gartner

36. “Or delivering the consistent
customer experience
across the entire enterprise”

39. Every sale has five basic obstacles:
no need, no money, no hurry, no
desire, and no trust.
- Zig Ziglar

40. OP + NT = EOP

41. OK, BUT HOW DOES
ENTERPRISE CRM
FIT INTO CUSTOMER EXPERIENCE
MANAGEMENT THEN?

42. RM
C

43. WE CAN DESIGN &
DELIVER YOU
A WORLD CLASS
CRM STRATEGY
NO PROBLEM!

44. COMPLEXITY

46. EXCESS
BAGGAGE

47. CRM IS NOT
ABOUT
SOFTWARE…
IT IS AN
IDEOLOGY

48. IT IS ABOUT
CONNECTING
EMPLOYEES
TO CUSTOMERS

49. IT IS ABOUT
DELIGHTING
YOUR
CUSTOMERS

50. AND SEEING THEM AS MORE
THAN JUST A NUMBER…
ACCOUNT NUMBER 23058399
TRANSACTION NUMBER 00092374
COMPLAINT NUMBER CP09938
REVENUE NUMBER € $ £

51. …AND AS
COMPANIES’ MOST
VALUABLE
ASSET

52. OP + NT = EOP

53. It’s now your obligation to
study how, where & why
customers are connecting
and how they are making
& influencing
decisions.
Who said it? Brian Solis

54. It takes a mere 5% of
INFORMED
INDIVIDUALS
to influence the direction
of a crowd of up to two
hundred people.
- Professor Jens Krause, Leeds University

55. Respondents time
after time end up
concluding
that they lead the
group – even though
they were lead
by others.
- Professor Jens Krause, Leeds University

56. PEOPLE
MAKE DECISIONS
BASED ON THE
SHARED
EXPERIENCES
OF OTHERS

57. WHERE
DO YOU
START?

58. YOU NEED A
STRATEGY

59. 07
7 STEPS TO
GET STARTED
06
WITH CEM
05
04
03
02
01
Build a
cross-functional
work team
Map the
customer
journey
Consolidate
customer data
collection/VoC
Create a
governance
mechanism
Map the
customer
experience
ecosystem
Select
projects
that build
momentum
Define key
elements of
a strategy
Source: 1to1 Media “7 Steps to Get Started With Customer Experience”

60. CRM SUCCESS
FACTORS:
STRATEGY,
PROCESS,
TECHNOLOGY,
AND PEOPLE
Deploy new technology
that supports required
process flows.
(February 2012)
Business goals
and objectives
Develop process flows
to achieve the selected
strategy.
Technology
Process
Apps and
infrastructure
Procedures and
business rules
Get target users to
successfully utilize
the applications
Source: Forrester “Navigate the Future of CRM”
Strategy
People
Organizational
structure, skills,
and incentives
Condition the
organization to
adopt new processes.

61. AVOID BECOMING ONE OF THESE
STATISTICS BY RETHINKING YOUR
CRM STRATEGY
25% of firms reported that poorly
31% of firms reported that poor
48% surveyed admitted they suffered
21% of businesses stated the need
defined business requirements had
a negative impact on projects.
technical/integration difficulties.
Source: ComputerWeekly.com – Forrester; Rethink Your CRM Strategy
business process design accounted
for project failures.
to customize CRM.

62. CUSTOMER
EXPERIENCE LEADERS
OUT PERFORM THE
LAGGARDS
+22%
- 46%
Over a recent five-year period during which the S&P
500 was flat, a stock portfolio of customer
experience leaders grew 22%. During this time,
Forrester found that those companies who
performed poorest in the Customer Experience
Index also performed poorest in terms of stock
performance.
SOURCE: FORRESTER RESEARCH 2012

63. OP + NT = EOP

64. SAP
CASE STUDIES

65. AT A GLANCE
Objective
Transform STM’s one-to-one marketing
strategy to drive loyalty and improve the
customer experience through fare and route
advice, and geo-localized partner rewards.
Solution
SAP CRM
Benefits
Increased fare revenue from greater ride
frequency and non-fare revenue from partner
ecosystem
“
At STM our marketing objectives are to generate
additional ridership and non-fare revenue. To do this
we realised we needed to engage better with our
existing customers and provide a better user
experience, information, and value. ”
Pierre
Bourbonnière
Head of Marketing

66. Loyalty Integration
Enhance
the Rider
Experience
Personalized Offers
Redemption
Transit Directions

67. AT A GLANCE
Objective
Take on larger rivals by providing a delightful
social media experience
Solution
SAP Social Media Analytics by NetBase SAP
Cloud for Social Engagement
Benefits
Meet increasing demand for social media
interaction without scaling team. Reduced
churn. More cost-effective customer acquisition
with marketing messages based on social buzz.
“
Looking at our results with social engagement, the ROI
is tremendous. We are getting a 94% resolution rate
as compared to our usual 11-12%. We are seeing
tremendous ROI servicing our customers on social
using these tools. ”
Krissy Espindola
Director, Knowledge Management & Social
Customer Support

68. AT&T AND T-MOBILE SLUG IT OUT OVER
A CUSTOMER ON TWITTER

69. USING SOCIAL TO
LISTEN, UNDERSTAND, AND ENGAGE
THE FULL SOCIAL WEB
LISTEN
SAP Social Media Analytics by NetBase
YOUR TARGET AUDIENCE
UNDERSTAND
Fan Appz, an SAP Cloud Partner
PERSON TO PERSON
ENGAGE
SAP Cloud for Social Engagement
© 2011 SAP AG. All rights reserved.
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69

70. OMNI CHANNEL
BUILDING A CONNECTED
ENGAGEMENT PLATFORM

71. YOUR
CUSTOMERS
DON’T CLOCK
OFF AT 5PM
24/7 BRANDS

72. TODAY’S
CUSTOMERS
WANT
INSTANT
GRATIFICATION

73. WATCH OUT
FOR THE
“CREEPY
FACTOR”

74. 90%
of word-of-mouth conversations
about brands take place offline.
PRIMARILY
Face-to-face, in people’s homes and offices,
in restaurants and stores.
ANYWHERE
PEOPLE CONGREGATE.
Source: KELLER FAY GROUP

75. 1.5 BILLION
MILLENNIALS GLOBALLY
COMING OF AGE
In 2011, the youngest hit their
mid-teens & the oldest entered
their 30’s
YOUTH QUAKE
Gen Y Impact

76. OP + NT = EOP

77. It is not the strongest of the species
that survives, nor the most
intelligent, but the one most
responsive to change.
- Charles Darwin

78. CHANGE
IS THE BIGGEST
OBSTACLE
But CHANGE has now changed.
It is now…
•
Ever surprising
•
Unrelenting
•
Unforgiving
•
Only going to get faster and
faster and faster...

79. Adapt or Die

80. AVOID DIET
PILL
APPROACH
SHORT
TERM GAINS

81. BEWARE
OF ISLAND
SOLUTIONS

82. BUILD A CONNECTED
ENTERPRISE BY
BRINGING TOGETHER
PEOPLE
+ PROCESS
+TECHNOLOGY

83. COMPETITIVE
ADVANTAGE
REQUIRES
HARD WORK

84. OP + NT = EOP
© 2011 SAP AG. All rights reserved.
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84

85. KEY TAKEAWAYS

86. OLD RECIPES NO LONGER WORK
CRM MUST EVOLVE BEYOND
THE FRONT OFFICE
TACTICAL
STRATEGIC
TO BE IN THE GAME
INTERNAL
FOCUS
TO WIN THE GAME
CUSTOMER
FOCUS
Front Office
Front Office
EFFICIENCY
Inside - Out
FOCUS ON 1:1
CUSTOMER
ENGAGEMENT
Customer
EXPERIENCE
EFFECTIVENESS
Inside - Out
TO CHANGE THE GAME
Outside - In

87. TO WIN TODAY
YOU MUST ALIGN YOUR MARKETING AND SELLING MOTION TO YOUR BUYER’S JOURNEY
AWARENESS
CUSTOMER
Set Criteria
Commit to
Change
Loyal or a
Detractor
Assess Risk
Compare
BRAND ADVOCATE
Purchase
BUYER’S
JOURNEY
Target
Discover
Guide
Win
SELLING
MOTION
Differentiate
& Value
Shape Vision
Influence
Close
Build Confidence
Support

88. TURN INSIGHT INTO ACTION TO CREATE
EXCEPTIONAL EXPERIENCES
•
Understand customers
•
Identify opportunities
•
Predict their needs & behavior
Interact with customers 1:1 in the
moment when it matters across
channels & touch points
INSIGHT
EXPERIENCE
EXECUTION
•
Drive operational excellence
•
Empower employees & partners
•
Deliver on your promises

89. You’ve got to start with the
CUSTOMER EXPERIENCE and
work back toward the technology.
- Steve Jobs

90. OP + NT = EOP
© 2011 SAP AG. All rights reserved.
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90

91. ?
© 2011 SAP AG. All rights reserved.
Public
91

92. Old Process + New Technology =
Expensive Old Process

93. about.me/nicholask71

94. THANK YOU!
Feel free to connect with me at :
Nicholas.kontopoulos@sap.com
#nicholask71
http://sg.linkedin.com/in/nicholaskontopoulos
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