Customer Engagement Network - September 2012

engage

at the Customer

Engagement

Summit

27 November 2012 • Park Plaza Victoria

, London

cust merengagement

i s s u e e i g h t S e p t e m b e r 2 0 1 2

The official magazine of theCustomer Engagement Networkwww.customerengagementnetwork.com

This Directors Forum will examine the challenges andopportunities around multichannel customerengagement. It will identify winning strategies fororganisations who are taking an holistic view of theircustomers in what is being increasingly viewed as an‘omnichannel’ customer engagement environment.

MultichannelCustomerEngagement26th September 2012, London

Delegates will learn:• How world class organisations are

implementing successful multichannel customerengagement strategies

• How to gain a single view of customers in an ‘omnichannel’ environment and win greater customer retention and long term customer loyalty as customer behaviour and expectations change

• Where social and mobile channels can be most effectively integrated onto an overall holistic customer engagement offering

• How to measure and quantify the business benefits that accrue from an effective multichannel customer engagement offering

• How to differentiate your organisation from competitors through an engagement culture that links employees directly to customers across channels.

• Virgin Media

• Twitter

• Merchants

• Confirmit

• BT

• Gallup

• Interactive Intelligence

• Foviance

• Seren

Speakers todate include:

Time: 9:00am – 5:00pmVenue: Gallup Consulting, The Adelphi,

1-11 John Adam Street, London, WC2N 6HS

For more information contact Chris Wood: [email protected] +44 (0) 1932 341828 or visit our website:

www.customerengagementnetwork.com

RegisterFREE TO ATTEND FOR CUSTOMERENGAGEMENT PROFESSIONALS

http://multichannelforum.eventbrite.co.uk

L E A D I N G B P O P R O V I D E R

Host Partner Sponsors

I S S U E E I G H T • S E P T E M B E R 2 0 1 23

An autumn windfall of events atCustomer Engagement Network

a word

from the

editor

The Customer Engagement Network represents a broad business church and our mantra is around how employee engagement and customerengagement can lead to improved performance, productivity and profitability. We are urging leaders from organisations such as yourselvesto take a more holistic view of customers, cut across the old internal silos and deliver a consistent, relevant and engaging customerexperience across all channels, offline, online, social and mobile – and in doing so gain greater customer loyalty and competitive advantage.

So what about our autumn extravaganza? First up we have our Multichannel Customer Engagement Directors Forumhttp://multichannelforum.eventbrite.co.uk which will highlight brand new global research on the Autonomous Customer and featurewords of wisdom from the head of Twitter in the UK on how best to engage customers through the now omnipresent social media channel,plus case studies from the likes of Virgin Media.

Following hard on the heels of the Multichannel Directors Forum comes our Customer Engagement in the Financial Services DirectorsForum http://financialservicesdirectorsforum.eventbrite.co.uk where we are lucky enough to have an opening keynote from FirstDirect, brand new research on the sector from Henley and RBS and also a US perspective with a Wells Fargo case study. In a sector wherewinning back customer trust is of paramount importance this promises to be a fascinating day.

Our final Directors Forum of the year is around Employee Engagement and Customer Engagementhttp://employeeengagementforum.eventbrite.co.uk and the link between performance and profitability and we are fortunate enough tohave leading edge case studies from the likes of M&S plus an opening keynote from the founder of the organisation behind the SundayTimes 100 Best Places To Work phenomenon – so once again a great day in prospect. Then last, but by no means least, we have ourinaugural Customer Engagement Summit www.customerengagementnetwork.com which is effectively a ‘mash up’ - and much, much,more – of all our Directors’ Forums examining all the customer challenges and opportunities faced by organisations today.

We are hugely excited about our Customer Engagement Summit and we have some fantastic content lined up for delegates. The Summitwill include world class case studies, presentations from leading academics and practitioners from around the globe, panel discussions,break out sessions, top notch networking opportunities and a dose of entertainment thrown in for good measure.

Of course we are not stopping there and we have a roster of Directors Forums lined up for 2013 alongside the Customer EngagementSummit which is set to become an annual event. For more details on our line up for 2013 go tohttp://customerengagementnetwork.com/article.detail.php?c=0&s=0&at=0&o=1&a=10297.

Here at the Customer Engagement Network we are dedicated to providing you, our customers, and your network, with all the strategies,tools and techniques needed to produce successful and sustainable employee and customer engagement results across the board.

So please engage with us, attend some of our events, read the magazine, visit the website, subscribe to our weekly alerts - we look forwardto helping you achieve the business success that will inevitably come from engaging your employees and your customers.

Steve Hurst, Editorial DirectorCustomer Engagement Network

Here at the Customer Engagement Network we have a mouth-watering line up scheduled for this autumn including three in ourDirectors Forums series and also our first ever Customer Engagement Summit - and I’m confident that at least one of these highlevel thought leadership events will be just right for you as a reader of Customer Engagement Magazine.

haveyour say

Have your say - if you have any feedback on this issue of Customer Engagementshare it with us by sending a text message, starting with the word ‘Engage’ to 66099.

This Directors Forum will highlight thekey issues and challenges facingthe much maligned financialservices sector and itsrelationships with customersagainst a backdrop ofcontinued difficult economicconditions. It will offer practicalsolutions to these challenges

for a sector that. It willdrill down to the

core of theproblems andhelp delegatesfind the bestway forward.

CustomerEngagement inFinancial Services11th October 2012, London


• Wells Fargo

• First Direct

• RBS

• Nationwide

• Rapide

• Gallup

• Confirmit

Delegates will learn:• The winning strategies that financial

services organisations are employing to regain customer trust and loyalty

• What the regulatory changes aimed at ensuring the sector improves its customer service outcomes mean in practical terms

• What world class organisations are achieving through implementationof customer centric strategies

• How to measure and quantify the business benefits of strategic and meaningful customer engagement strategies

• How to differentiate your organisation, win customer trustand gain competitive advantage

• What the future holds in a troubled business sector and what long term customer engagement strategiesare needed to succeed.







http://financialservicesdirectorsforum.eventbrite.co.uk

News BeatPenny dropping on customer experience and profits link. Customers feel

emotional about financial services. Leadership key to employeeengagement.

Cover Story:

How multichannel has revolutionisedcustomer engagement

Mike Havard draws upon extensive research to tell us what must bedone in our multichannel customer world to become ‘digital by default’

Engaging relationships key to customerengagement and brand health

The explosion of social media and mobile devices means customers nowexpect immediacy in their conversations with brands says Glen

Manchester

The Big InterviewAmerican Express doing nicely

on customer engagementHow American Express changed its customer service centre philosophy

from a transactional approach top a relationship builder

Trust and transparency key to successfulretail customer engagement

Changes in consumer behaviour and new technologies leading to aseismic shift in retail customer engagement were highlighted at the

Customer Engagement Network’s latest Directors Forum. Steve Hurstreports

Mobile voice of the customer: is it really achievable?The adoption by consumers of smart mobile devices seems to know nobounds and bog standard mobile phones are almost a thing of the past

says Dave King

Multichannel marketing: an aspiration or a necessity?Gary Roberts looks as why so many companies aspire to multichannel

marketing and yet so few have achieved it

Social Media and Mobile EngagementDirectors Forum Report

In the first in a new series of regular reports from our Directors ForumsDominic Graveson looks at the highlights of the social media and mobile DF

Final Word:

Six steps to a great multichannel experienceColin Shaw is the first to admit that his initial advice on how to create a

great multichannel experience might come across as a bit strange

Editorial Advisory BoardDr Guy Fielding, Richard Sedley, Rod Butcher, Hugh Griffiths, Marcus Hickman,

Karine Del Moro, David Cottam, James Rapinac, Crispin Manners. Professor MoiraClarke, Professor Katie Truss, Mike Havard

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8-11

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contentsTo join the Network (free membership) and receive weekly Alerts,

Digital Magazines and Invitations to the Directors Forums go towww.customerengagementnetwork.com

Editorial Director: Steve Hurst [email protected] Sales & Marketing Director: Chris Wood [email protected]

Tel: +44 (0) 1932 341828Customer Engagement ©ICT Communications Ltd

Customer Engagement magazine is published by the Customer EngagementNetwork, the organisers of the Customer Engagement Directors Forums.



Financial services customers want greatservice and their emotional needs cateredfor - the likes of Barclays and Santandershould take note.

Financial services companies trade uponthe relationships they hold with their clients,and those relationships depend on servingthose customers' needs. But what do theyreally want and need?

The answer, according to Harris Interactive,and one that banks such as Barclays andSantander (and many others) might takenote of, is that when, and it’s a big whenexcellent service has become the 'norm', itis actually emotional factors that topcustomers' list of needs.

The company's research in the UK alsofound that consumers are also looking forfinancial institutions that treat them fairly, actresponsibly, and have friendly staff. But,given that these emotional needs are soprevalent, it leads us to ask the question: howmany financial organisations are actuallyfocusing on such needs when designingtheir products, services or communications?

What stands out and signals the importanceof these 'softer' traits is that offering a widerange of products and services is onlyslightly more important than being ethical. Infact being ethical and relevant to you

personally is more important that being upto date, having a large branch network orhaving a strong online presence. This articleis copyright 2012 TheWiseMarketer.com).

There was a time when being big, having alarge retail branch network and largenumber of cash machines was particularlyattractive. Today those needs are lessprevalent, and consumers are now lookingfor something different, and needs do varybank by bank. Some are looking for adeeper emotional relationship with theirbank, one that goes beyond trust and fitswith their lifestyle and priorities. Someothers simply want a bank that deliversgood products and services, the channelsof delivery are far less important.

When analysing consumer needs by theirmain bank, it is clear to see that thecommunication strategies of both the Co-operative and First Direct are working. Bothhave either managed to attract customersaligned to their strategy or have effectivelycommunicated what they stand for to theircustomer base and make it an importantpoint of differentiation. Interestingly, withinthe credit card and general insurancemarkets, similar differences by brand exist.

In particular the AA, Tesco and LV= standout from the crowd within motor insurance.So even on the most basic level we can seethe power of brand and communicationsand how they have a role to play managingthe customer relationship. They help setcustomer expectations even within thosecategories that many see as a commodity

product. Of course, we have to accept thatthere may be a bit of post-rationalisationhere. Despite this, clearly some banks areattracting customers who have distinctiverational and emotional needs.

Many organisations talk about how theyhave 'consumer centric' processes, someeven shout about how they have recentlyintegrated their legacy systems into a singlecustomer voice or have developed acustomer segmentation to help themeffectively target profitable customers. Butmanaging customer relationships effectivelyis not simply about integrating the latesttechnology or software, nor is it just aboutdata mining and finding out who your mostprofitable customers are.

I S S U E E I G H T • S E P T E M B E R 2 0 1 2 6

Customers feel emotional about financial services

newsbeat

The company's research in the UK also found that consumersare also looking for financial institutions that treat them fairly,

act responsibly, and have friendly staff

Organisations are finallycoming round to the factthat great customerexperience translates tothe bottom line TemkinGroup has released itsnew research report, The

Future of Customer Experience. Theresearch examines how customerexperience (CX) management has evolvedand where it is heading.

The research shows that 59% of largecompanies have ambitions to be industryleaders in customer experience within threeyears. At the same time, Temkin Groupestimates that there are more than 100,000people in North America employed in full-time customer experience roles.

Based on this significant ambition and thedevelopment of customer experience toolsand techniques by the growing pool ofcustomer experience professionals, manycompanies are building stronger overallcustomer experience managementcapabilities.

“Customer experience has hit a tippingpoint, with a critical mass of professionalsdefining repeatable practices and deliveringstrong ROI to their firms,” states BruceTemkin, author of the research andManaging Partner of Temkin Group.

The report highlights that companies arebeing motivated by a clearer understandingabout the link between good customerexperience and stronger business results.Temkin Group completed a study of 10,000consumers that shows a strong correlationbetween CX and loyalty across 18 industriesin the U.S. The report reveals that acompany with $1 billion in annual sales cangenerate more than $300 million over threeyears with a modest improvement incustomer experience.

Penny dropping on customerexperience and profits link


Leadership key to employee engagement

Staff attitudes to senior managementparticularly important when it comes toemployee engagement. There is a“significant link” between employees’engagement with their job and their well-being, according to the Chartered Instituteof Personnel and Development’s (CIPD’s)latest Employee Outlook survey.

The report shows that engaged employeesscore much more highly against the Officefor National Statistics’ ‘happiness index’.The index asked subjective questionsrelating to life satisfaction and howworthwhile people feel their lives are, onwhich engaged employees scored morehighly, while they also reported lower scoreswhen asked how anxious they felt,compared to employees with neutralengagement or those who are disengaged.

In addition, the report found there to be astrong link between the extent to which employees trust the senior managementteam in their company and their well-being.

It said: “There is a particularly strong link

between employees who strongly agreethey trust their senior managers and lowerthan average levels of anxiety.”The extent to which employees agree theyare consulted by senior managers onimportant decisions was also found to havea strong correlation with well-being scores.

The CIPD said: “It is in employers’ intereststo be interested in the well-being of theirstaff – not just because they have a duty ofcare towards them – but because of the linkbetween well-being and employeeengagement, as well as lower risks ofaccidents and lower levels of stress andabsence.”

The CIPD said another notable finding fromthis quarter’s report is the percentage ofemployees who feel neutral about theirengagement at work – this represents 58%of those surveyed and remains consistentlyhigh from the previous two quarters.

The study measures employee engagementthrough a number of factors relating to thelevel of engagement individuals feel to their

organisation beyond pure job satisfaction.

The CIPD said that while people’ssatisfaction with their specific jobs isrelatively high, this does not extend tooverall engagement with their organisation.

The report said: “There are a number ofpointers in the research as to why peoplemight be feeling this way – and these mainlyrelate to how people are managed.

“While satisfaction with immediatemanagers is generally strong, there arecontinuous issues around a lack of personaldevelopment – including coaching on thejob, discussing learning and developmentand giving feedback on performance.

“Perceptions of leaders also need to improve,with views on leaders’ consultation beingparticularly poor and trust and confidence inleaders falling further this quarter.”

Customers won’t engage without trust

Trust is emerging as the key driver forcustomers in an increasingly multichannelenvironment. With a wealth of informationavailable online, trust has become a crucialtool that consumers use to sort andprioritise all of that information, according tothe 'Trust Factor' report conducted byAbout.com in collaboration with Latitude.

The report found that the existence of trustdrives consumer decisions, with 84% ofrespondents reporting they will not engagewith a brand until trust has beenestablished. A number of were identified fordeveloping trust with consumers, includingthe following:• Expertise - communicates authority

and real value, and distinguishes itself from other brands and content fighting for consumer's attention.

• Fairness - provides information and tools to help the consumer evaluatepros and cons, risks, and so on.

• Relevance - aimed at the consumer's needs and situation, and directly on-topic.

• Choice - respects and acknowledges

the consumer's buying process by offering more options and solutions,and by allowing consumer to express their preferences.

• Relatability - understands the consumer and looks at things from his point of view, leading them as would a knowledgeable friend.

• Awareness - although name recognition alone doesn't guarantee trust. Consumers rely on awareness driven by personal experiences or recommendations from a friend.

"With the great volume of information atconsumers' fingertips, not only is trust avaluable filter but it is also a prerequisite forconsumers to even enter the purchaseprocess," said Laura Salant, director ofresearch for About.com.

Different platforms were identified as beingbetter at delivering certain trust elements,and can therefore be complementary toolsfor brands. Respondents reported that allten trust elements are even more important

to the mobile channel than the onlinechannel. However, 'format' was identified by71% of respondents as being moreimportant for mobile, with 'accuracy' and'expertise' also ranking highly.

In social media, consumers are ambivalentabout the value of certain commonly-usedsocial actions such as Likes. Reviews wereidentified as inspiring trust twice as much asgeneral Likes, though seeing a Like orrecommendation from a friend increased thetrust value of that action.

Video works best to enhance trust when it iscombined with other types of content, and56% of respondents agreed that video buildstrust when it adds illustration or explanationattached to other types of content.

The study also found that consumers preferto combine information from a variety ofsources, with 82% reporting that they useinformation from brands, content, ads andsocial media to create custom solutions forwhat they need.

customerengagement


The multichannel era has arrived suddenly and changed everything. Private one-on-oneconversations between customers and companies are being replaced by open forumdiscussions that anyone can join. Instead of waiting in line to be served, customersexpect to serve themselves.

Instead of turning to a business for information and advice, they turn to each other.Where once businesses dictated channels, customers are now taking control. 90% of

Mike Havard draws upon extensive research to tell uswhat must be done in our multichannel customer worldto become ‘digital by default’

coverstory

�


“Where once businesses dictated channels, customers are now takingcontrol. 90% of organisations believe the ability to provide a joined up

multichannel experience is vital to success. But 70% confess theydon’t do it”

customerengagement

organisations believe the ability to provide a joined up,multichannel experience is vital to success. But 70% confessthey don’t do it.

The drive towards multi-channel, increasingly non-voicecustomer contact is inexorable for two reasons. First, becauseconsumers demand it. Second, because the economics areso attractive. Online transactions are carried out at a fractionof the cost of a phone call. However, if all of this is true, whyhave many organisations found it so hard to wean customersoff the phone and onto other channels – especially for serviceinteractions?

Falling short of expectationMost often, it is because multichannel delivery falls woefullyshort of customer expectation. Slow response times, unclearinformation and non-intuitive online navigation leave consumersfrustrated and reaching for the phone.

So, if consumers want to use low cost channels, andbusinesses want to encourage them to do so in the interests ofbusiness efficiency, what needs to change to make it happen?

Our exhaustive study of organisations recognised as pioneersin multichannel delivery has convinced us that the route tosuccess starts with a comprehensive re-evaluation of anorganisation’s contact strategy. Instead of looking at emergingchannels and seeing how they can be shoe-horned into theexisting contact centre status quo, organisations need torethink end-to-end customer contact management with theassumption that they will offer digital channels unless there is acompelling reason not to. In essence, they must manage theirchannels so that digital becomes the default choice for theirconsumers.

Digital must be exceptionalReconfiguring customer contact strategy around the principlethat digital channels will be the default choice for consumersdepends upon one significant and obvious factor. Namely,consumers have to believe that, in the overwhelming majorityof cases, digital channels will offer them better service andfaster resolution than the phone. In short, digital channeldelivery must be exceptional.

The first step in mapping a digital by default strategy is toanalyse and categorise the reasons for customer contact andthen to identify which channels will improve the speed, ease ofuse or value of the organisation’s response. For example,

Customers seeking to validate information – packagedelivery details, flight or train times – will be happy to do soonline, providing the information is accurate and up to date.

Customers experiencing service issues – poor broadbandperformance or mobile coverage for example – are likely toreview their peers’ experience via social forums, or to contactthe provider direct via web chat or instant messaging. They willopt for public channels because their query is ‘non-personal’.

Customers wanting to resolve a personal query – check abill or progress an application – won’t choose public channels,but will opt instead for a phone call or swift email response.

Carphone Warehouse knowsMaking a clear distinction between one-on-one personalchannels and one-on-many public channels is important sincethe latter are, as a rule of thumb, considerably cheaper todeliver. Bowing to the consumer preference for speedy onlineaccess in these cases, makes absolute economic sense. �

I S S U E E I G H T • S E P T E M B E R 2 0 1 2 1 0

Carphone Warehouse, for example, hasused video on demand to deliver top qualityservice at low cost. ‘Eye Openers’, aYouTube channel, provides short video clips,made by contact centre staff, that offer helpand information about different phones andtheir features. Since its launch in November2009, Eye Openers has received more thansix million hits – each of which mayotherwise have become an expensivetechnical support desk call or visit to a store.

Remove the barriersCarphone Warehouse is an excellentexample of a company that has not onlyintroduced lower cost channels butoptimised and promoted them to maximiseusage. Too often, companies introduce newchannels and then, when usage is low, writethem off as failures. There are often verysimple barriers that, once removed, will leadto success.

Bill payment is a good example. More andmore organisations now allow online billpayment – cheaper for the organisation tooperate and easier for the customer to use.But, take up has been slow. Concernsabout online security may be part of theproblem, but experience tells us that the lackof human confirmation is a contributoryfactor that a simple confirmation email orSMS could overcome.

Overcoming consumer uncertainty abouttransactions is an important point. SurreyCountry Council recently moved its schoolapplications process online. However,parents’ natural anxiety over so important an

issue, prompted them to call to make suretheir online application had been received orto check on progress.

Contrary to the Council’s intention, calls tothe contact centre actually went up! They arenow looking at ways to use SMS, email andother channels, not just to acknowledgereceipt, but to provide proactive updates onthe application’s progress.Integration of engagement keyThe key is to think through the entireinteraction process, rather than just identify acheaper means to do a single part of it.

Our research has revealed a clear dividebetween organisations that have looked attheir contact strategy in an integrated way,identified where digital channels can improvethe customer experience and investedaccordingly, and those that are simplylooking at online channels as a cheapalternative to high cost interactions. Theformer are succeeding, not only in terms ofenhancing customer service, but savingmoney too. They are also achieving widerorganisational goals, such as loyalty,engagement and advocacy. The latter, arenot even achieving their cost reductiontargets, because the digital options theydeliver are not effective enough toencourage customers to use them.

Transforming the contact centreEven in successful ‘digital by default’organisations, the contact centre continuesto play a pivotal role. There are times whena one-on-one non-public conversation is theonly thing that will work. Companies that

“Our exhaustive study of organisations recognised aspioneers in multichannel delivery has convinced us that the

route to success starts with a comprehensive re-evaluation ofan organisation’s contact strategy”

Mike Havard,Director of

Ember Services

coverstory

�


have tried to operate without a contact centre have discoveredthis to their cost.

We are aware of several online retailers who, having opted forthis route; their disgruntled customers, unable to resolveproblems or vent their frustration, took to the web, publishingdamning remarks on public forums. The simple lesson is this –if you don’t allow customers to resolve their issues with youprivately, they will castigate you publicly.

In the digital by default environment, calls to the contact centrewill decrease, but their importance will increase proportionally.Customers will opt to call because their query is particularlyurgent, complex or significant, or because attempts to resolvetheir issues by other means have failed. Either way, it isimportant to respond quickly and well. Traditional contactcentre metrics will have to evolve to stay relevant.

Customer effort scoreFor example, if every call is a complex one, call handle timebecomes less relevant than resolution. The economic priorityisn’t throughput, but call outcomes. Or, if customers are callingbecause other channels have already failed, speed to answermust be a priority. Businesses may have tolerated a five or tenpercent abandonment rate in the past, but will find that this isno longer acceptable.

Many traditional customer management metrics can effectivelybe replaced by the ‘customer effort score’. This is a method ofrating how easily customers can undertake various interactionsvia various channels. It is based on the understanding that, theeasier something is, the more likely people are to do it. BT

analysed customers’ online behaviour and identified momentswhen customers appeared to struggle with the process. Theynow intervene and offer a web chat to help them over the hurdle.

Though this is necessary in less than two percent of onlinevisits, these visits account for about 20% of BT’s Consumeronline sales, proving that proactive intervention can save theday. Customer satisfaction with the service is an impressive86% but, equally importantly, almost all say they would havecontacted BT by another (more expensive) channel, had theynot been offered web chat.

The business caseThe business case for becoming digital by default is compelling– lower cost plus higher customer satisfaction and sales.However, no one said it is easy. It demands a willingness tochallenge the status quo, develop new skills, embraceinnovation and, of course, to invest in new technology andprocesses. The penalties for not doing so, however, will beconsiderable. Organisations will find themselves landlockedinto increasingly expensive contact channels with progressivelylower levels of customer approval and advocacy. The evolutionof customer contact is inexorable and – potentially – hugelybeneficial. Embrace it.

Ember’s research paper, ‘Becoming Digital by Default: Newthinking for multi-channel effectiveness’ can be downloadedfree of charge from www.emberservices.com.

Mike Havard is Director of Ember Services and will be

chairing the upcoming Customer Engagement Summit

on November 27.

Contact him at [email protected].

“The business case for becoming digital by default is compelling – lowercost plus higher customer satisfaction and sales. However, no onesaid it is easy. It demands a willingness to challenge the status quo,

develop new skills, embrace innovation and, of course, to invest in newtechnology and processes”

customerengagement


feature

For many years marketers focused their energies on pushingcustomers to a destination, in many cases a website, call centre orretail store. But in this age of the customer, we should be morefocused on the journey than the destination.

We need to quickly understand that it isn’t just about what journeywe want to take the customers on, it is about meeting them wherethey are in their journey and making ourselves adaptable along theway. It’s about engaging with the customer when they want, wherethey want and how they want. Personalised, contextual andrelevant information required at every stage of the customer journey

The landscape is now a continual stream of two way dialoguebetween consumer and brand; the key to this relationship is thespeed and relevance of response – if you stand still amongst thedeluge of tweets, Facebook posts and blogs your brand is likely todrown.

The future of companies building relationships will rely heavily onthe ability to offer effective communications with consumersacross a variety of channels at any one time. However, buildingan engaging relationship by delivering the right information atthe right time, to the relevant device, whilst at the same timeincorporating customer profile information - all of whomhave different expectations and needs - is challenging andrepresents one of the biggest tests for companies today.

Age of the customerThe key to the whole successful business jigsaw puzzleis the pivotal position and changing self-awareness ofthe customer. We are living in the age of theconsumer, meaning, the customer is in the driver’sseat – gone are the days where customers wouldaccept the status quo. There’s now a need tobalance what you need to sell more of with whatcustomers are actually looking for.

Options are virtually unlimited in the digital worldand today’s customers have no problemswitching their allegiances. To give us somecontext we need only look back at employeeloyalty, as this too has a direct correlation to thethinking of today’s customer.

The face of customer engagement is changing rapidly. The explosion of social mediaand mobile devices means customers now expect immediacy in their conversationswith brands says Glen Manchester

�

During the 1940’s and 1950’s it was considered rare if someone ofthat generation had more than two jobs in a lifetime; when youjoined a company, you practically joined for life. This generationwas all about loyalty both to their employers and to the companiesthey did business with.

The next generation of baby boomers started experiencing theshift in employee/employer loyalty in the mid to latter part of theircareers, and had around five jobs during their working life; beingnot nearly as reluctant to make a change as previous generations,and it was this mind-set that started the shift to focus onemployee/customer satisfaction.

New customer experience agendaThe X & Y generation is expected to have between 15-20 jobs intheir working career. It is this group who have, and are continuingto take the customer experience agenda to a whole new level.They are the digital society; they use every channel available tothem to be connected with their friends, colleagues and favouritebrands via smartphones, Facebook and Twitter.

It is difficult to reach an audience that has little tolerance for massmarket messages or push advertising, unless you can make itfast, easy, relevant and of a language they can understand. Thisgroup tends to travel in packs trusting their peers’recommendations, thus personal recommendations and keepinggroups happy becomes increasingly important to brands: anddon’t forget those mass connectors and mavens; the people outthere influencing the conversations with millions of followers, orthose who are beacons for a cause, service or product.

Identifying a shift in the customer-brand landscape is all well andgood, but actually being able to adapt to it, and address the newlandscape to meet the requirements of internal marketing, as wellas those of the customer is far easier said than done. Of centralimportance is the ability to join up all the different touch pointsduring the customer journey, along with the ability to personalisecommunications if they are to succeed.

With more and more people going digital, business winners andlosers will be determined by their ability to engage customers andbusinesses more deeply and relevantly across digital touch pointsand multiple channels.

Customers’ expectations are to have one relationship with anorganisation, not multiple relationships as a result of themultiple contact points they engage through. For example, ifa customer were to interact with the customer servicedepartment, either by phone or web, they expect thecompany to have a view of their interactions across theentire enterprise.

Understanding the customer journeyUnderstanding and managing the customer journeyacross multiple touchpoints is now mission critical.Today’s customer wants personalised, contextual andrelevant information at every touch point whether theyare talking to someone on the phone or interacting viathe web or an app. This will require companies toknow their customer’s preferences, behaviour andinteractions like never before.

Customers do not want to read content that was designed for awebsite but has been resized onto a mobile phone. Not onlyshould they not have to read it, in most cases, they won’t evenattempt to. They shouldn't have to settle for anything less than abest-in-class experience at any point of their journey. Sufferingbroken conversations over time or channels, being pestered byirrelevant communications or having to repeat themselves is nolonger acceptable.

Nothing can ruin a brand’s reputation quicker than to sendirrelevant information to the customer who has a Twittercommunity of over a million followers and an industry reputation.Customers today have the platforms for sharing opinions likenever before and the digital savvy customer isn’t afraid of onlinenaming and shaming. One negative post that goes viral can havedire consequences for a brands value, and lead to wide scalecustomer defection.

Businesses are built on relationships, and now more than ever,these relationships matter. Yet as the importance of relationshipshas increased, so too has the relevance of the types ofcommunication used to foster them. These are thecommunications which ultimately keep the CEOs, CMOs and thedigital strategists awake at night.

Monologue now customer dialogueBusinesses are certainly coming round to the idea of customerdialogue, which is positive, but in order to build superior customerrelationships, companies need to enable effective two-wayconversations with their customers.

Every communication, regardless of touch point, needs to haveunmatched real-time personalisation across every channel. Butbeing able to provide this level of personalisation is far from easyand means you must incorporate a combination of behaviour,outcomes and experience. In the end, it comes down to knowingyour customer so well, they never need to contact you becauseyou can anticipate their needs and deliver moments that matter;be it in an email, text, Facebook post or letter through the post.

Building customer relationships goes beyond these channelsthough: it’s about the whole customer journey; it’s aboutmaintaining a consistent, intelligent conversation across all touchpoints while marrying opportunity, engagement and servicing; it’sabout blowing up the information silos and realising the fullpotential of integrating back-end and front-end systems; andprobably, most importantly, it’s about delivering real-time, relevantcontent for every conversation as if that particular person was themost important customer you ever had.

Companies are treading a finer line than ever before with theircustomer bases thanks to the digital landscape we now occupy.Customer experience is often now the only source of competitivebrand advantage to drive customer loyalty, brand health andrevenue growth. Effectively managing your relationships with thosewho buy or use your products and services has never been moreimportant to get right.

Glen Manchester is CEO and founder of Thunderhead.comwww.thunderhead.com


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interview


Companies that operate or outsource large-volume call centresusually try to get the job done as quickly and cheaply as possible.But this cost-centred viewpoint misses a key detail - calls equalone-on-one time with your customers.

A case study by Ross professor M.S. Krishnan, ‘Customer Serviceat American Express: A Relationship, Not a Transaction’, detailshow Executive Vice President Jim Bush brought a new philosophyto the credit card giant. Bush saw the value in these customerconnections and shifted the company's call centre operation into aprofit and opportunity centre, changing employee incentives,training, recruiting, and IT systems. He also gave employees moreflexibility and empowerment along the way.

As a result, customer satisfaction is up, card member spending isup, and handling time is down. In this Q&A, Krishnan, the JosephHandleman Professor of Business Information Systems andInnovation at Ross, says this transformation is part of the growingmovement toward co-creating experiences with customers, one ata time. The case also touches on how technology enables thistrend. Terry Kosdrosky asks the questions.

How did you discover what American Express was up to interms of changing their customer service approach?

Krishnan: This originated from a MAP project [MultidisciplinaryAction Projects]. We build on MAP in terms of leveraging theconnections and contacts to develop research projects or teachingcases. About five years ago, I was interested in how AmericanExpress was using technology. One MAP project worked on thetechnology side, and two others worked on customerpersonalization and new projects. I got a deep look at whatAmerican Express was doing and began a relationship within thecompany. I had written the book The New Age of Innovation withC.K. Prahalad, which centres on the idea of a co-created,customized experience requiring partners and suppliers. Two ofour alumni, Sanghy Vatsa, MBA '07, and Rohit Bery, MBA '98,connected with the concepts in my book and introduced me to theinitiatives at American Express. They told me what they were doingand introduced me to Jim Bush. That's how I got into looking atmoving customer service from a transaction to a relationship.

That's really the key message in the case, isn't it? AmericanExpress shifted its thinking on customer service from

How American Express changed its customerservice centre philosophy from a transactionalapproach to a relationship-builder

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something to be done as quickly and cheaply as possible tothis valuable touch point that can forge a deeperrelationship with customers.

Krishnan: It bucked the tradition. Traditionally, customer servicewas viewed as a core problem - and not just for American Express.Large-volume companies view growing call volumes as a problem,and the engagement is reactive. That creates an atmospherewhere agents are incentivised to handle as many complaints aspossible because what they are doing is viewed as a cost, not anopportunity to connect. American Express, at the time, took auniquely different view.

But another problem was unique to American Express, and thatwas that customers were not fully informed about the differencebetween American Express and other credit cards. AmericanExpress is a closed-loop operation, since it controls the entirepurchase and payment cycle, issues cards, and manages its cardmember network and merchant network. It charges an annual feebut offers many benefits through corporate partners. So Jim Bushlooked at the calls as an opportunity for innovation. He thought,"I'm talking directly with the customer. How can I solve the problemand use this call as an opportunity to build a relationship?" Theminute the call comes in, the cost is the same no matter what.Whatever problem happened to prompt the call has happenedalready. So stop looking at this as a cost centre. We are talkingdirectly with the customer. Let's take advantage of that.

Easier said than done. How did he make it happen?

Krishnan: He had to connect the organizational and socialincentives and get the right technology. He refined the roles of theircall centre agents and called them customer care professionals,and he took a different approach to recruitment and training aspart of building a different culture. He recruited from the hotel andhospitality industries, since they train their employees to connectwith the customers. Then he found customer agents were limitedin what they could do by the technology - they had a script and ascreen and were timed, which was a big constraint. And Bushlearned their training was 70 percent on the technology and script,and just 20 to 30 percent on working with customers. He flippedthat around. In addition, the incentives changed. In the past, it washow many calls you did and how fast - very traditional call centremetrics. And if you look at it as a cost centre, those metrics makesense. But Bush looked at it as a profit centre, an opportunitycentre. He moved to giving customer care professionals a netpromoter score, which measures satisfaction. They changed themetric and the behaviour. Now everyone on the team has topromote the business, solve customer problems, and educatecustomers about other opportunities. It becomes a much morecomfortable call for the customer.

Because of American Express' closed-loop model, they canleverage their partner relationships to benefit their customers. Thatmeans these customer care professionals know about thoseopportunities and how to understand each customer in thatcontext. So the technology had to move in that direction. The careprofessional had to have data on this person, their spending habitsand interests. If the customer had a history of buying golfmerchandise, they could tell that person that they have a

partnership with a certain golf supplier or tour event and can findthem deals. So the technology prompts the agents to who thiscustomer is. That's the N=1 concept in our book at work.

But they also took the N=1 customisation approach with theiremployees. Earlier they all worked in groups, had shifts and asupervisor, and were regimented like factory workers. Bush made itmore open and collaborative. They used technology to create aportal where the employees could exchange their shifts without achain of supervisor permissions. The system has a net promoterscore for each shift, and who is on that shift. It's transparent. So itincreases the work-life balance for the employees, empowersthem, and makes performance transparent.

How did Bush get buy-in from top executives?

Krishnan: It was difficult, but he had a logical plan. In hindsight,he's shown that you can empower employees and reduce costs.Customer satisfaction is up, card member spending went up, andhandling time went down. But at first it was difficult to make acase. There always are cost pressures, and to go to thoseexecutives and ask for this kind of change, which involves trainingand technology spending, never is easy. That's why you have tosay the leadership at American Express was bold and open to newideas. It was not an easy time to do it. That's why it requiresleadership to make a decision. And certainly Jim Bush took a risk.It was his vision, and going into it you never know if it'll really workor not. You have to kind of make it work. Now American Express istaking this model global. They are looking at a global servicestrategy.

You note this did involve upfront costs. Not to downplay therisk, but American Express is a large company with means.What are some strategies for companies with fewerresources?

Krishnan: For smaller or more capital-constrained companies, Iwould advise they do this in a phased manner. You have to dosome experiments so that you can see how things work beforescaling them up. So experiment in a phased way, and then learnfrom it so you can figure out how to internalise it.

For the IT portion of this, even American Express had to dosome things gradually because of how tied they were tolegacy systems. But it seems like technological demand isgrowing exponentially. How can companies keep up withoutincurring massive costs?

Krishnan: Cloud computing and social media have a role. Oftenthese legacy IT platforms and systems are intertwined in multipleaspects of the company, so it's not easy to just throw them out.The new platforms that the technology industry is developing areinteresting. For example, cloud computing allows companies todramatically reduce capital requirements. For smaller companies,they don’t have to incur huge costs. It shifts how companies look atcomputing. It used to be about products. You would buy productsoff the shelf. But now we get computing as an experience. You canbuy on the go and pay only for what you consume. This reducescapital intensity and democratises access to capability. There'smuch more access to capabilities that previously were availableonly to large companies with deep pockets.

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report

Customer engagement in the retail sector is evolving at anincreasingly fast pace as a perfect storm of changing consumerbehaviour and technology, coupled with the recognition of theimportance of real customer insight are combining to revolutionisethe sector creating an omnichannel retail environment.

These were come of the key findings at the latest CustomerEngagement Network Directors Forum on CustomerEngagement in the Retail Sector, where delegates heard thattrust, transparency and relevance are critical factors in successfulretail customer engagement.

The Directors Forum delegates were treated to case study materialfrom organisations as diverse as Marks & Spencer, Screwfix andAmazon plus world class keynotes from experts in the retail sector.

Delegates at the Directors Forum hosted by Gallup and sponsoredby Confirmit, Foviance and Interactive Intelligence heard howthe retail sector will see more change in how people shop and payover the next two to three years than we've seen over the past 20.

Changing customer behaviour and a ‘third wave’ of shoppingtechnologies are the driving force behind this revolution. In the lastyear, mobile customer engagement has driven the most significantchange, giving consumers the ability to shop anytime and anywhere.

Third wave is upon usRetail is yet to see the full impact of technologies that sit alongsidemobile: location, social, digital payments, as well as a range ofcutting edge or 'third wave' shopping technologies. The

convergence of these will challenge the established idea of 'multi-channel' retail. Online and offline channels are merging and brandshave to be present everywhere where their customers are – asstated omnichannel is the new phrase being used.

The opening keynote presentation came from Professor MoiraClark, Head of Marketing, Henley Business School with ‘EffortlessEngagement - Are you Working Your Retail Customers Too Hard’.

In a highly engaging presentation Moira looked at case studyexamples from as far afield as Japan and South Korea and retailersincluding Tesco and First Direct to show how effortlessengagement or ‘making it easy to be a customer’ is where the realfight for competitive advantage can be found. She also citedexamples where the opposite is true, where too much customereffort is needed, including Heathrow Terminal 5 and IKEA.

Next came John Fleming - Gallup Chief Scientist for CustomerEngagement with his presentation ‘Human Nature at Work:Applying Behavioural Economics to Drive Growth and Profitabilityin the Retail Sector’.

John said that the next big institution of leadership – the nextmanagement discipline - will involve developing new sets ofleadership initiatives around principles of behavioural economicsbecause the gains to be found are bigger than in any other area.

Gallup’s HumanSigma approach to measuring and managing theemployee customer encounter, linking employee engagementdirectly to customer engagement, performance and profitability isone such initiative that retailers can use to drive high performance.

Changes in consumer behaviour and new technologies leading to a seismic shift in retail customer engagementwere highlighted at the Customer Engagement Network’s latest Directors Forum. Steve Hurst reports

Directors Forum on Customer Engagement in the Retail Sector20th June 2012, London


customerengagement

Screwfix drilling downNext came the first case study of the day ‘The ScrewfixExperience: Customer and Employee Journeys, a joint presentationfrom James Westlake,VP, Business Development, Confirmit andAndy Dingwall, Customer Insight Manager, Screwfix

After an introduction from James outlining Confirmit’s position,Andy from Screwfix presented details of its customer experiencejourney and shared the Screwfix story thus far story from the goalsthat drove the programme, to the learnings derived and technologythat has underpinned the programme’s success.

Andy also will also explain how the employee engagementprogramme is now being overseen by the Screwfix customerinsight team to enable the company to use employee feedback toadd another dimension and to drive change, again forging the linkbetween employee engagement and performance.

Next up came Richard Anson, Founder of online customer revieworganisation Reevoo with ‘How Social Engagement StrategiesDrive Retail Sales’

Richard explained how consumers now expect a seamless andtransparent relationship with retailers across all touch points, whilstthe importance of peer-to-peer referrals and recommendationscontinues to grow. He said that trust and transparency are key tosuccess – a theme that permeated the whole Directors Forum.

Using case studies and insights from retailers including the likes ofDixons and Jessops Richard showed how businesses are usingsocial content such as customer reviews - bad as well as good -and consumer community solutions to increase customerengagement, drive sales and build customer loyalty.

Amazing Amazon Following Richard came Lisa Byfield-Green, Retail Analyst, atPlanet Retail with her presentation ‘Global Multi-Channel Trendsand the rise of Amazon’ Lisa looked at the changing face of theconsumer, the rise of new technology and the knock-on effect thisis having in store. Lisa focussed on how retailers are blurring thechannels to create an omnichannel retail environment pivotedaround customer engagement, a seismic shift in the way thatretailers interact with their customers

For the second part of the presentation Lisa focussed on thephenomenal growth of pureplay e-commerce retailer Amazon, itsstrategy and why she believes it will be among the top three globalretailers by 2016.

Continuing the themes of technology, trust and customerengagement came Conrad Simpson Director, InteractiveIntelligence with his presentation ‘Technology solutions for retailcustomer engagement strategies’.

Following the lunch break there was a lively Panel Debatefeaturing the morning presenters on 'What is the future forcustomer engagement in the Retail Sector?’ Here again thethemes of transparency, trust, relevance, customer insight thecrucial link between employee engagement, customer engagementand retail performance came to the fore

Next came another joint presentation from Richard Sedley,Commercial Director, Foviance and Amanda Squires managing

director of Baobaz with ‘CustomerCentric Retail: Nine Lessons from theDigital Frontline’.

Using examples from contemporaryretailers Richard and Amanda shared someof the secrets of success from their experienceswith three things online retailers should do, threethings they should not do and three tips for success. High levelcustomer insight was a definite ‘do’, giving too much choice was a‘don’t do’ and tips included a smile - even an online smile works!

No ordinary M&SNext up came another case study from Jo Moran, Head ofCustomer Service ‘Marks & Spencer Case Study: CustomerEngagement Across Channels: One Brand..., One Experience?’

Jo explained how M&S serves 21 million customers a week in itsretail stores and two million in its Food Franchise stores dealingdeal with four million contacts per year through contact centres vialetter, phone, email and social media, and delivering with partnersinto one million customers homes each year.

Jo stressed that each customer, channel and interaction aredifferent and that what matters is a consistent and appropriateapproach, focussing on improving service while at the same timereducing cost to serve - defining that and delivering it is a challengewhich requires companies such as M&S to be in touch with theircustomers whatever their point of contact with the brand.

The final presentation – last but by no means least – came fromMatthew Hopkinson, Director Local Data Company ‘The physicaland virtual contact points in customer engagement.’

Matthew took a detailed look at how the physical shoppingchannels are changing and how as a result the sense of ‘place’ ischanging. Vacancy rates and occupancy profiles of towns arechanging faster than ever before as the omnichannel environmenttakes hold.

Matthew said that for many retailers a turning point has beenreached where growth and profitability of online sales is growingconsiderably faster than in store but the two have greater successin parallel than in isolation. It is consumers and technology that aredriving this change, which is a first for the retail industry.

Trust and transparencyIn his summing up of the day Directors Forum Chairman andEditorial Director of the Customer Engagement Network SteveHurst said it was clear customer engagement in the retail sector isundergoing a revolution driven by changes in consumer behaviourand new third wave technologies led by mobile and socialengagement.

Transparency, relevance and trust are the pillars of this brave newworld, where employee and customer engagement are intrinsicallylinked to performance and profitability, and where the smart use ofimproved customer insight and engagement are winning strategies.

Steve Hurst is Editorial Director of Customer Engagementmagazine and the Customer Engagement Networkwww.customerengagementnetwork.com

To download presentations go to:http://www.customerengagementnetwork.com/directorforum.agenda.php?a=10094#agenda29


Directors Forum on Customer Engagement in the Retail Sector

20th June 2012, London

SPEAKER PRESENTATIONS

Keynote - EffortlessEngagement - Are youWorking Your RetailCustomers Too Hard

Professor Moira Clark, Headof Marketing,Henley Business

School

Effortless engagement or ‘making it easy tobe a customer’ is where the real fight forcompetitive advantage can be found.Thissession will focus on:• What do we mean by customer effort?• Understanding the different types of

customer effort• How to map out the customer effort journey• How to build customer loyalty by adopting

low-customer effort approaches

Human Nature at Work:Applying BehaviouralEconomics to Drive Growthand Profitability in the RetailSector.

John Fleming - Gallup ChiefScientist for CustomerEngagement

We believe that the next big institution ofleadership – the next management discipline -will involve developing new sets of leadershipinitiatives around principles of behaviouraleconomics because the gains to be found aremore colossal than in any other area. Gallup’sHumanSigma approach to measuring andmanaging the employee-customer encounteris one such initiative that retailers can use todrive high performance.

Case Study: The ScrewfixExperience: Customer andEmployee Journeys

Andy Dingwall - CustomerInsight Manager, ScrewfixJames Westlake - VP,Business Development,Confirmit

Screwfix will present details of their customerexperience journey and will share their storyfrom the goals that drove the programme, tothe learnings they’ve derived and technologythat has underpinned the programme’s

success. They will also explain how theiremployee engagement programme hasenabled the company to use employeefeedback to add another dimension and todrive change.

How Social EngagementStrategies Drive Retail Sales

Richard Anson- Founder, Reevoo

Consumers now expect aseamless and transparentrelationship with Brands and Retailers acrossall touch points, whilst the importance of peerto peer referrals and recommendationscontinues to grow. Using case studies andinsights gained from across 150 brands andretailers, Richard will show how businessesare using social content (for examplecustomer reviews) and consumer communitysolutions to increase customer engagement,driving sales and building customer loyalty.

Global Multi-Channel Trendsand the rise of Amazon

Lisa Byfield-Green - RetailAnalyst, Planet Retail

Lisa will look at the changingface of the consumer, the riseof new technology and the knock-on effectthis is having in store. For the second part ofthe presentation Lisa will focus on thephenomenal growth of pureplay e-commerceretailer Amazon, its strategy and why PlanetRetail believes it will be among the top 3global retailers by 2016.

Technology solutions forretail customer engagementstrategies

Conrad Simpson - Director,Interactive Intelligence

Customer Centric Retail:Nine Lessonsfrom theDigital Frontline

Richard Sedley - CommercialDirector, Foviance AmandaSquires

Using examples from contemporary retailersRichard and Amanda will share some of thesecret they have learnt from over 15 years ofEtail experience.

Case Study: CustomerEngagement AcrossChannels: One Brand...,One Experience?

Jo Moran - Head of CustomerService Marks & Spencer

At M&S we serve 21 million customers aweek in our retail stores and 2 million in ourFood Franchise stores; we deal with 4 millioncontacts per year through our contact centresvia letter, phone, email and social media; anddeliver with our partners into 1 millioncustomers homes each year. So is eachexperience the same? The simple answer isno as each customer, channel and interactionare different: what matters is appropriatenessbut defining that and delivering it is achallenge which requires companies to be InTouch with their customers whatever theirpoint of contact with the brand.

‘The physical and virtualcontact points incustomer engagement.’

Matthew Hopkinson - DirectorLocal Data Company

Matthew will take a detailedlook at how the physical shopping channelsare changing and how as a result the sense of‘place’ is changing. Vacancy rates andoccupancy profiles of towns are changingfaster than ever before as the omni-channelenvironment takes hold. For many retailers aturning point has been reached where growthand profitability of online sales is growingconsiderably faster than in store but the twohave greater success in parallel than in isolation.It is consumers and technology that is drivingthis change, which is a first for the retail industry.

Moira Clark

John Fleming

JamesWestlake

RichardAnson

LisaByfield-Green

ConradSimpson

RichardSedley

Jo Moran

MatthewHopkinson


The rate of adoption of cell phones and mobile devices in the last tenyears represents one of the greatest innovations in technology, in termsof global expansion and speed, and the subsequent change in behaviourand expectations that mobile has driven among consumers and businessusers alike.

The immediate and agile nature of mobile communication, and the ability tokeep interactions brief but effective, means people can achieve more in lesstime. What’s more, they can do this whenever and wherever convenient—unrestricted by the traditional constraints of working hours and desktopaccess. As a result, mobile devices are becoming increasingly pervasive,particularly in emerging markets, and are often the preferred method ofcommunication for many users, principally those in traditionally hard-to-reach audiences such as the youth market.

So, what does this mean for organisations and departments whoconduct Voice of the Customer (VoC) programmes? Well, in simpleterms, it means that if they haven’t already done so, they need toquickly implement ways to serve their customers and audiences ‘on thego’, or risk losing them to a competitor who has wholeheartedlyembraced the mobile channel.

For most customer insight specialists and market researchers, implementingmobile engagement is a complex challenge. It is not simply a question of addingmobile as a new and separate communications channel because that misses the

The adoption by consumers of smart mobile devicesseems to know no bounds and bog standard mobilephones are almost a thing of the past says Dave King

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true opportunity of mobile which is to engage people on theirterms in order to capture insights that you cannot capture byany other method. Here are a few tips to help you to getstarted on your mobile VoC journey.

1. Monologue to DialogueIn the shift to supplant landline telecoms, mobile hassimultaneously caused a profound cultural change in customerbehaviour and attitudes. The mobile-enabled population oftoday expects any interaction on their mobile device to betimely and relevant. Capturing customers’ opinions ‘in-the-moment’, close to the point of purchase or experience, willprovide information with less bias, recall issues or influencefrom the brand. This leads to more accurate data, more truthfulopinions, and more engaged participants.

Immediacy of communication enables opportunities forvalidation, such as the collection of photo, video and audioevidence that adds richness to the data collected, andprovides ‘proof’ of the experience in question.

2. Reduce churn through clear andengaging surveys

Survey clarity and relevance for the respondent are crucial. Thewide variety of handsets, displays, applications andfunctionalities has generated some inconsistency. It is no easytask to produce a survey that will display in a similar way on allthe devices which your customers may use. The evolution ofsmartphones and tablets has only complicated the matter,whilst offering greater choice in survey types andmethodologies.

A few rules will ensure mobile technologies can be fully optimised: • use short surveys (which has become the standard in

the industry)• detect participants’ mobile devices in order to use the

right display mode• show questions in a manner that’s engaging for the respondent• continually review surveys to ensure they are timely

and relevant• deliver surveys that are tailored to different key touchpoints

for respondents• work with experienced partners

3. Build value for participantsBuilding long-term, profitable and useful relationships with yourrespondents is not just about delivering beautiful, engagingsurveys and expecting them to complete them. Incentivisingsurvey completion (such as valuing their input and insights tosuch an extent that you provide them with feedback on theirfeedback) is one useful additional tool for longer-terminteraction but successful mobile engagement programmesdevelop an on-going dialogue with their respondent groups.This could include: updating participants instantly on theprogress and results of the studies they are involved in;providing immediate response and resolution to customerservice issues; or updating customers about new products orpromotions that they can immediately benefit from.

4. Integrate mobile technologies with existing feedback processes

The most successful mobile engagement strategies are thosethat integrate with existing feedback channels to deliver acomprehensive view of customers or the market.

For each programme, organisations should ask:• What types of audiences is this programme aimed at?

What are the demographic and geographic considerations?• Is this a purposefully mobile campaign, or is it better suited

to multi-channel delivery with mobile support for instant response or additional evidence?

• What type of mobile delivery is the programme most suited to: SMS, browser, application, or a combination?

• Does this programme work best if integrated with online or telephone-based feedback, to allow a wider range of respondents to participate?

5. Embrace mobile panelsMobile panels provide a structured and permission-based wayof recruiting willing and engaged respondents. These panelscan be either specialist panels, or part of a multi-channel panel(offering mobile as one of the channels respondents canselect). In both cases, they provide some interestingalternatives to e-mail as a way of inviting panellists to surveys,via SMS or push notifications (from an app). The voluntarynature of mobile panels means respondents are more engagedand will fill in more surveys, or even download a research app, �

Dave King is Executive Vice Presidentof Mobile Solutions, Confirmit

feature

which will enable them to provide their feedback whilst offlineand sync their answers back when online. More engagedrespondents are also more likely to utilise their mobile phone tocollect images, video, sounds, or even QR codes.

6. Accommodate all screens in all environmentsThere are many technicalities that organisations must considerin the implementation of mobile engagement, and experiencedpartners are the best reference point here. At a top level, it isimportant that the mobile technologies used are able to caterto all types of network, be able to work with poor networks,support touchscreens, work with Flash, and render well on alldevices.

7. Multi-mode. Remember there are a numberof modes that must be considered.

SMS Deployment – Reach• What types of audiences is this programme aimed at?

What are the demographic and geographic considerations?• The promise of ‘reach any phone on the planet’ gives

strong limitations to the level and depth of insights youwill gather

• Maximum of 140 characters per message and will be limited to no multimedia integration

• Will provide an unsophisticated and stilted end user experience

• Can be expensive

But, if reach is your objective then this is the model to use.Teenagers send on average 3,500 texts/month, over 100/day,so this model is worth considering for that market.

Mobile Browser – Rich with Some Visual Customisations • Constant: need to be online at all times to participate in

a survey• You will need to constantly load each page of the content• Best option if you want to approximate the branding and

style of on on-line survey

This is the method to choose if your study requires no richelements, and if it’s acceptable that the lowest commondenominator with respect to mobile browser functionality willbe fine for your ‘regular’ online participants. Typical

recommendations from those who use this method include‘keep open ended text limited’ and ‘don’t use images’. Andthat makes sense if you’re going for representativeness, tryingto reach every simplistic phone in the market.

Mobile Applications – User Experience, Rich Insights • Constant: need to be online at all times to participate in

a survey• Applications run on the device itself, taking advantage of

the devices’ capabilities and power• Allows for multimedia questions and features such as

GPS, video playback, audio capture and more• No lag time and offers the end user a very fluid experience• Online and offline support

Exploiting the power and capabilities of the device anddelivering a rich, predictable, consistent experience are ofprimary importance. Only an application based solution canaddress these issues.

And finallyThere is a lot to digest with regard to mobile VoC; howevermobile engagement is not a complicated art. It has clear andsimple benefits, and can be implemented without technicaldifficulty, particularly when working with a proven partner.What is certain is that we are still at the infancy of what can beachieved through mobile engagement. No longer just a datacollection method, it now represents a revolutionary way ofengaging with your customers, ‘in-the-moment’, on theirterms. Although there are a few legal and usability issues thatare specific to mobile feedback, mobile customer engagementbest practices are essentially the same but emphasized whencompared to other research methods: surveys need to bereally short, they need to be integrated within a comprehensivecustomer programme, they need to be fun and engaging forthe respondent, and they need to generate actionable insightsfor the organization.

Businesses that succeed in mastering the art of integratingmobile within an end-to-end feedback platform will achieve aholistic view of their customers and derive robust businessactions from their insights, no matter how they were collected.

Dave King is Executive Vice President of MobileSolutions, Confirmit. www.confirmit.com


“Capturing customers’ opinions ‘in-the-moment’, close to the point ofpurchase or experience, will provide information with less bias, recall

issues or influence from the brand. This leads to more accurate data,more truthful opinions, and more engaged participants”

customerengagement


Customer relationships, like all relationships,must be nurtured and developed. With theinflux of new channels and the growing use ofsocial media, marketers and brands face ever-increasing pressure to find the ‘right’ way toengage and communicate with their customers.

As an executive vice president, with many yearsof experience in driving customer satisfaction inthe retail sector, I have a very clearunderstanding of the challenges faced byCMOs and marketing departments, when tryingto engage with customers. Whilst arguablytechnology has made customer engagementeasier, implementing and integrating newcustomer channels can pose major issues forbrands. Our customers often tell us this and assuch, we recently published a research reportentitled Disconnected Customer Channels, totry to understand the root of the problem.

The research asked 250 CMOs about thechallenges they faced in implementing theircommunications channels. Overall, for mepersonally, it was surprising to see thatalthough 90% wanted to integrate theircommunication channels, less than a third hadactually achieved it.

So the question is, if CMOs are recognising theneed for implementation and integration, whyare companies failing to actually do it?

Most companies struggle to integrate theirchannels and fully exploit each customerinteraction. Unfortunately, in light of the currenteconomic climate, persuading decision makersto sign off technology budgets can provedifficult. With added pressure from the top tocut costs, the predominant focus of the boardis to be cost efficient and budget smart.

The costs associated with technology are asore subject for many CEO’s, often becausetechnology appears to be expensive at theimplementation stage with no immediate returnon investment (ROI). I completely understand thisperspective and, at times, it is hard to envisionthe long-term ROI when it comes to implementingtechnology, especially when it takes time to seeimpressionable results. Therefore, CMOs need toput forward a strong, convincing case, outliningthe business benefits and explaining thethought process behind the recommendation.

So what are the benefits of multichannel

marketing, and how do they translate into

significant ROI?

Gary Roberts looks at why so many companies aspire tomultichannel marketing, yet so few have achieved it

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Gary Roberts isExecutive Vice

President,EMEA, Pitney

Bowes Software


• Multichannels mean multiple opportunities to engage withcustomers and personalise offeringsWith the emergence of digital channels such as social media, thereare far greater opportunities for companies to connect and engagewith customers than ever before. This also presents anopportunity for companies to gain a deeper and more individualinsight into customers, enabling them to personalise their offerings.The more relevant an offer is to a customer, the more inclined theywill feel to purchase. This in turn translates to some significant ROI.

• Multichannels mean companies can have a more holisticview of their customers The more channels available to communicate with each customer,means the more data to analyse on customer behaviour. Theamount of data generated on customer behaviour and trendsprovides companies with the ability to predict what their customerswant, what they are going to do and ultimately, how best tocontact them. By knowing all of this, companies can deliver asatisfactory multi-channel experience for customers andcommunicate with them in the most effective way to make themfeel valued, engender trust and encourage additional purchases.Again this puts another tick in the ROI box.

• Multichannels leads to greater customer loyalty andretentionIt goes without saying that if you know a customer inside out andyou’re communicating with them effectively, through the rightchannel, at the right time and with the right offers, then a customeris highly likely to be satisfied. Happy customers are loyal customersand are less likely to jump ship to another competitor, whichmeans companies can benefit from profitable and lifetimecustomer relationships. More time spent keeping current

customers happy also reduces money spent on attracting newcustomers with discounted services or products.

So it’s easy to see how multichannel marketing can deliver effectiveROI for an organisation. But what are the effects of fragmented,generic communications? Fragmented ownership of customerinteractions by different functions within the business was quotedas the single biggest reason for losing new customers. This can bevery daunting when you think about the growing number ofchannels in the present day. Mass targeting was the secondbiggest reason, followed by lack of understanding of the customer.So how can the benefits of multichannel marketing really beignored?

Ultimately, the way in which customers wish to connect andcommunicate on-demand, is forcing organisations to channel theirattention and resources. Times are changing and with digital informationand big data overhauling the IT landscape, the need to understandthe customer in order to reach them has never been so crucial.

CMOs need to communicate this need and paint a picture forCEOs to visualise the long term ROI of multi-channel marketingsolutions. Co-ordinated and integrated communication can givebusinesses a great competitive advantage, in terms of drivingcustomer satisfaction, loyalty and therefore revenue. All anycompany really wants, is a successful strategy in winning newcustomers and the opportunity to develop lifetime customerrelationships. Sounds simple really…and it is. With the rightstrategy in place, this is a reality any business can achieve.

Gary Roberts is Executive Vice President, EMEA, PitneyBowes Software. www.pitneybowes.com

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review

Summer finally arrived in London this May intime for the latest Customer EngagementNetwork Directors Forum which, this month,focused on how social media and mobile wasbeing used to deliver innovations in customerservice across a range of organisations.

Social media has been an instrumentalelement in a revolution in customer

expectations over the past few years.Traditional contact centre routes are beingbypassed by many consumers who arepreferring to air their grievances or expresstheir delight away from the channelscontrolled by those providing the productsand services. They are instead using the likesof Facebook, Twitter and other platforms tocreate a dialogue between their peers and

He blogs at dombles.wordpress.com and tweets @dombles

�Dominic Graveson, Director of Strategy and Engagementat leading digital agency cScape (www.cscape.com) is aregular at our Directors Forums. In the first of a series ofregular reports from the events, he extracts the highlightsfrom the discussions


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suppliers in a space which can appear chaotic anduncontrollable.

The main insights from the day were:Customer expectations have changed, dramatically. Mostmajor (and many smaller) consumer brands are finding that asiginificant percentage of their consumers are active in thesocial space and talking about the products and services theybuy and use. They expect to be able to contact and engagethrough these channels, but with this diversity in conversationscomes a less formal style and you can be seen to be ‘morehuman’ and mistakes, if dealt with honestly and openly, shouldbe viewed as a manageable learning experience.

Don’t be intimidated by the prospect of engaging yourcustomers and prospects through their channels as well asyour own. While some organisations are way ahead of thepack in delivering advice, marketing and after sales service,there are simple actions you can take now which should becost controllable, measurable and effective in opening thedialogue. The key is to participate in a manageable way.Discuss which channels and platforms are right for you, decideupon how you will engage your audience in a way which isboth relevant and complimentary with your services, involvefront line staff, and start small - reviewing regularly - and buildup a picture of what works for you.

If it isn’t already, mobile is likely to be one of the mostimportant channels for customers in the very near future.As an ‘always on, always with you’ platform, consumers arefinding it easier to access information, relationships andmessages via their pocket than their PC. This means the‘where and when’ of their contact with you is as important asthe ‘what’. Companies need to think about how this changestheir day to day contact - time of day, their location, what their

friends are doing - these are not only potentially available toyou, but are expected to be considered when contact is made.Again, start with something small and manageable. Youprobably don't need to create a whole estate of apps (webaccess is the fastest growing and most accessible wayconsumers will interact with you anyway), pick the mostappropriate interactions and ‘re-think’ an optimised mobileversion of your web site. The 80/20 rule was made for mobile,so keep it simple and focused.

Measurement is key, but keep an open mind about whichmetrics you gather and the meaning you derive from them.Some activities may be attributable to direct sales or increasein market share, but many won't be. Some will reduce coststhrough channel shift, others deliver value in reputation andimproved customer service. It is important to develop astrategy for measurement early, and to take the initiative inproviding essential reporting across your organisation - fromreporting to the board on ROI for the activity, to beingtransparent, open and inclusive to front line staff who may feelunprepared or even threatened by the changing landscape.

These new interactions, and the significance of these channelswill vary across different businesses and stages in the buyingand consuming cycle. We don’t all have to be as elegant anoperator as Apple in this space, but social and mobile need tobe front and centre of your marketing and contact strategy,because that's probably where your customers are.

This event welcomed a range of speakers from organisationsas diverse as Gallup, LinkedIn, Everything Everywhere (T-Mobileand Orange) and Facebook, with commentary and advice fromFoviance, Sponge Group, The Social Media Leadership Forumand Foviance. Customer Engagement Network recorded threepodcast interviews on the day you can hear by visiting thewebsite.

Podcast links:

Justin Hunt – Founder of ItsOpen and Social Media Leadership Forumhttp://webjam-upload.s3.amazonaws.com/ceclubpodcastmay12_justinhunt1__13094__.mp3

John Lamphiere – Facebook Head of Sales, UK and Irelandhttp://webjam-upload.s3.amazonaws.com/ceclubpodcastmay12_johnlamphiere1__20103__.mp3

Ben Kay – Head of Digital, Everything Everywherehttp://webjam-upload.s3.amazonaws.com/ceclubpodcastmay12_benkay1__18953__.mp3

We live in a complex world and the bad news it’s going to get worse. I am a geek.

I’m fascinated by what technology can do today and moreover, what it will do

tomorrow. One thing is for certain it is going to have a huge effect on us all, like it

or not.

How do organisations manage these new channels? My first bit of advice may be a bit strange. You need to look at your own mind set.

Are you thinking ‘how do I manage all our products down all these channels’ or are

you thinking ‘as I understand my customers these channels provide me with a

great way to interact with them’. The first is product centric and reactive. The latter

is customer centric, proactive and looks at this multichannel environment as being

an advantage and an opportunity.

Once you have established which lens you are looking at the challenge through,

how do you go about managing the Multichannel experience?

1. Above all, understand your Customers first!

It is critical to understand your Customers at a much greater level of detail than

most organisations do today. In doing so you will be able to understand and predict

their behaviours; which channel is best to use in what circumstance. It is accepting

Customers are people and are driven by emotions. In addition; various academic

psychology theories about human behaviour apply. We call this ‘Experience

Psychology’ and outlined this in our last book Customer Experience: Future trends

and insights, Palgrave MacMillan, 2010. Understanding the psychological aspect of

a Customer Experience means, you will understand customers may choose one

channel over another because of how they want to feel or do not want to feel. For

example, some customers don’t like complaining in person as they don’t like

conflict. Instead they prefer to write an email or a message on social media.

Understanding your customer helps you design an experience for each channel

and predict their use.

2. Define the experience you wish to deliver

What is the experience you are trying to deliver across all your channels? I would

wager you probably don’t know. If you haven’t defined your experience, each

channel will do what they think is best. When Customers interact in these different

channels they see and feel a different experience dependent on the channel they

use. They see and feel the lack of coordination. Customers are not stupid. They

change their behaviour to get what they need. For example, a Customer will see an

email saying ‘we will answer this email in 5 days’. They determine they need a

quicker reply and pick up the phone, knowing they’ll get a quicker response. The

irony is this costs the organisation more money to service but with a better

understanding of the customer this could be avoided.

3. Design your channel experience

Once you have defined your experience you need to implement it in each channel.

Simple.

4. Define an owner of the Customer Experience

As I mentioned before the channels are normally in various organizational silos.

Someone has to take a cross channel view and look at the world from the

customer’s view point. I would suggest that someone in the organization needs to

be given responsibility and the authority to ensure the experience is being

delivered across all channels.

5. Customer view on systems

With multiple channels this normally means multiple systems. Unfortunately you

will need to invest in a system that provides you and the customer with a view of

the Customer experience.

6. Embrace social media and the fact it needs a different approach

DO NOT just transfer the transitional experience you provide to Customers in the

social media channel. It is different. Far too many organisations treat social media

as a broadcast mechanism. It is not, it is an

interaction channel.

The multichannel experience is here to stay. I

see this as an advantage not a disadvantage.

The key is to understand your

customer at a much greater

level than you do now and then

design a deliberate

experience in each

channel.

Colin Shaw is the first to admit that his initial advice on how to create a great multichannel experience might comeacross as a bit strange but that doesn’t necessarily mean that it isn’t to be trusted – strange but true

customerengagement

the

finalword


Colin Shaw is founder and CEO of Beyond Philosophy (www.beyondphilosophy.com) one of the world’s firstorganisations devoted to customer experience. Colin is an international author of four best-selling books.Follow Colin on Twitter ColinShaw_CX

This Directors Forum will lift the lid on the employeeengagement strategies that aremaking some organisationswinners in the battle forcustomer loyalty, and wherethe links betweenemployee and customerengagement are beingleveraged to providebenefits to allstakeholders andto gaincompetitiveadvantage.

Employeeand CustomerEngagement5th December 2012, London







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• Mike Havard, Director, Ember Services - Conference Chairman• Roger Martin-Fagg, Economist • Professor Katie Truss, Employee Engagement,

University of Kent• Jonathan Browne, Head of Customer Experience, Forrester• Mark Bradley, Expert Commentator, Retail/Fan Engagement • Dr Nicola Millard, Customer Experience Futurologist, BT• Qaalfa Dibeehi, Founder Beyond Philosophy • Angela Baron, Engagement and Development

- Chartered Institute of Personnel and Development (CIPD)• Colin Adamson - SOCAP• Richard Robinson, Head of B2B Marketing, Google• John Casey, Director Business Development,

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Plus casestudies including:

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From the organisers of the hugely successful DirectorsForums series and the Customer Engagement Network aSummit providing customer engagement and employeeengagement insights and solutions across all channels.

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The only joined-up customerexperience event to drive customerand employee engagement solutions,performance and profitability

For more information contact Chris Wood: [email protected] • T: 01932 341828

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Content will include:• Customer feedback,

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customer behaviour

engagement culture

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greater customer loyalty

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