Access to full webinar: Understanding the Customer Experience Ecosystem to Succeed in the Age of the Customer (session 2) - http://goo.gl/In3RiE In this webinar you will learn how customer experience affects customer loyalty, which drivers of the experience impact loyalty the most, and best practices for establishing a disciplined system for customer understanding. This highlights the importance of having a virtual single view of information and advanced customer analytics across touch points and contexts. In addition to that, Denodo will provide examples of companies delivering great customer experience across industries using data virtualization.

1. © 2015 Denodo
Craig LeClaire
VP, Principal Analyst
Megan Burns
VP, Principal Analyst
Cory Munchbach
Analyst
Holger Kisker, Ph.D.
VP and Research Director
Session 1
CIO’s Must Enable Business Agility
via Modern Data Management in the
Age of the Customer
Session 2
Understanding the Customer
Experience Ecosystem to Succeed in
the Age of the Customer
Session 3
Build a Contextual Marketing
Engine and Fuel it with Data
Session 4
Business Agility Must Be Based
on a New Flexible and Agile Data
Approach
Data Virtualization for Business Intelligence and
Business Agility in the Age of the Customer
Four sessions providing insights and best
practices for the Age of the Customer
WEBINAR SERIES featuring FORRESTER RESEARCH

2. © 2015 Denodo
Data Virtualization for Business Intelligence and
Business Agility in the Age of the Customer
Suresh Chandrasekaran
Senior VP, Denodo

3. © 2015 Denodo
Understanding the Customer
Experience Ecosystem to Succeed
in the Age of the Customer
Megan Burns
Vice President,
Principal Analyst
SESSION 2

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Making Leaders Successful
Every Day

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Understanding the Customer
Experience Ecosystem to Succeed
in the Age of the Customer
Megan Burns, Vice President and Principal Analyst
Forrester Research Inc.

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Agenda
› Why is customer experience important?
› What type of an experience improves
customer loyalty?
› What do companies need to do to
design, implement, and manage
customer experiences?

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Agenda
› Why is customer experience important?
› What type of an experience improves
customer loyalty?
› What do companies need to do to
design, implement, and manage
customer experiences?

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Customer Experience is…
How customers perceive
their interactions with a
company

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CX drives three types of loyalty

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A 20-year business
cycle in which the most
successful enterprises
will reinvent themselves
to systematically
understand and serve
increasingly powerful
customers.
The Age of the Customer

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The Age of the Customer Power Flip

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The Age of the Customer Power Flip

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Firms are actively trying to improve CX

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Base: 112 large North American brands scored in Forrester’s Customer Experience Index, 2007
Source: North American Technographics Customer Experience Online Survey, Q3 2007 (US)
Customer Experience Index Scores, 2007
12%
23%
40%
25%
Very Poor
0 to 54
Poor
55 to 64
Okay
65 to 74
Good
75 to 84
85+
Excellent

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Base: 112 large North American brands scored in Forrester’s Customer Experience Index, 2007
Source: North American Technographics Customer Experience Online Survey, Q3 2007 (US)
Customer Experience Index Scores, 2014
1%
10%
42%
37%
11%
Very Poor
0 to 54
Poor
55 to 64
Okay
65 to 74
Good
75 to 84
85+
Excellent

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Improving CX quality boosts top line growth
Wireless service providers $1.6 billion
Airlines $1.4 billion
Credit card providers $825 million
Hotels $729 million
Retailers $572 million
Health insurance plans $494 million
Insurance providers $328 million
Car rental providers $320 million
Banks $161 million
TV service providers $138 million
Consumer electronics manufacturers $102 million
Investment firms $85 million
Internet service providers $55 million
Total annual impact

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Higher CXi scores boosted business metrics
AT&T U-verse • Revenue up by nearly 28% year over year
• More than 900,000 subscribers added
Citibank • Double-digit drop in customer attrition
• Increase in the average number of products
per household
Cablevision • Lowest levels of voluntary attrition in years
• Double digit declines in call volume
• 26% fewer repair visits to customer homes

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Agenda
› Why is customer experience important?
› What type of an experience improves
customer loyalty?
› What do companies need to do to
design, implement, and manage
customer experiences?

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Three core dimensions of CX quality
Ease
Emotion
Customers get value from
the experience.
Customers get that value
without difficulty.
Customers feel good
about the experience.
Effectiveness

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Loyalty dynamics vary by industry
Effectiveness
Ease
Emotion Effectiveness
Ease
Emotion

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Emotion dominates in 11 of 17 industries
Airline
Automotive
Retail
Banking
Government
Car Rental
Insurance
Credit Cards
Internet Service
Investment Firms
Parcel Shipping

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“People will forget
what you said.
They’ll forget what you
did.
But they will never
forget how you made
them feel.”

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© Copyright phillip andrew carl taylor and licensed for reuse under this Creative Commons Licence
Strengthen
Erode

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What drives customer
experience and
loyalty?

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Universal drivers of CX and loyalty
1. Make customers feel valued
2. Resolve customer problems or issues quickly
3. Talk to customers in plain language

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Agenda
› Why is customer experience important?
› What type of an experience improves
customer loyalty?
› What do companies need to do to
design, implement, and manage
customer experiences?

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discipline

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The extent to which an organization
routinely performs the practices
required to design, implement, and
manage customer experience in a
disciplined way.
Customer Experience Maturity

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Consistently deliver and improve that experience.
Define the right experience.
The Six Disciplines of CX Maturity
Strategy
Customer
Understanding
Design
Measurement Governance Culture

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Mature customer experience companies
› Value qualitative and quantitative insights

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Customer
Understanding
Measurement
Call transcripts, emails,
social media posts, etc.
Customer interviews &
field observations
Employee input
Operations & process
data, metrics
Behavioral analytics e.g.
web, call center, mobile
Financial data
Goal: Understand who customers are and what they
want from their interactions with the company
Goal: Quantify CX quality and it’s relationship to
business health to guide management decisions.
Inherently qualitative Inherently quantitative
Structured questionsSurvey responses
VoC
Programs

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Image: Wikipedia

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February 2014 “You Are Here: Location Analytics And The Rebirth Of Customer Experience”
Location Data Drives Real-Time Customer
Understanding And Modeling

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Photo: Jacom Stephens

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Mature customer experience companies
› Value qualitative and quantitative insights
› Treat customer understanding as an ongoing
activity, not a project

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Released
in 2007
Released
in 2010

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June 2014 “Business Agility Starts With Your People”
The Age Of The Customer Ushers
In New, Digitally Based Events

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Mature customer experience companies
› Value qualitative and quantitative insights
› Treat customer understanding as an ongoing
activity, not a project
› Democratize data across the customer
experience ecosystem

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Image: Wikimedia

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The web of relations among all
aspects of a company — including
its customers, employees, partners,
and operating environment — that
determine the quality of the
customer experience.
Customer Experience Ecosystem

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May 2014 “Want A Healthy Customer Experience Ecosystem? Free Your Workers”
Your Employees Need Three Freedoms To
Successfully Support Your Customers

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November 2013 “The CIO Mandate: Engaging Customers With Business Technology”
Systems Of Engagement Provide Your Business
Boundary

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Summary
› Customer experience is critical to loyalty
› Leaders are continually raising the bar
› Getting CX right can mean millions in revenue
› Success hinges on how well you make customers feel
valued, solve their issues quickly, and talk to them in
language they can understand
› Need a constant stream of quantitative and qualitative
data to maintain an accurate customer understanding
› Everyone in the ecosystem needs to know customers
equally well regardless of how far removed they seem

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Thank you
Megan Burns
+1 617.613.6294
mburns@forrester.com

47. © 2015 Denodo
Age of Customer – Power shift
CX drives loyalty, sustained
competitive advantage
Market dimensions show biggest
gaps in age of customer
Need for Modern Customer
Information Platform
Organization & Process
Dimensions
Forrester Take Aways Denodo Enablers
Fast data access; Information-
as-a-service; Agile integration
Organize canonical business
entities used across dimensions
Single View of Customer; Data
distribution across channels
Structured & unstructured;
Internal & external; Real-time;
Self-Service; Less replicated;
Virtual
Unified data abstraction layer
democratizes access to single
source of truth across and
beyond organization boundaries
Customer Experience (CX) – How Denodo drives it

48. © 2015 Denodo
Customer Experience (CX) – R Cable Example
Multi-channel Single Customer View

49. © 2015 Denodo
Customer Experience (CX) – Drives R Success and
Growth

50. © 2015 Denodo
Customer Experience (CX) – Data
Virtualization Enabled

51. © 2015 Denodo
Q&A

52. © 2015 Denodo
Cory Munchbach
Analyst
Session 3
Build a Contextual Marketing Engine and Fuel it
with Data
Thank you!
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