Serving the Next-Gen Customer
Jul 18, 2015
Serving the Next-Gen Customer
Presenters
Ashley Fieglein Johnson Chief Customer Officer ServiceSource
R “Ray” Wang Principal Analyst & Founder Constellation Research
Innovation Global Consolidation New Models
Seismic, Technology-Driven Shifts
Seismic, Technology-Driven Shifts
Across every industry
Innovation Global Consolidation New Models
• How should I change my process to adapt to innovative delivery and business models?
• How should I respond to non-traditional competitors?
• How can a greater focus on customer value be used as a revenue growth lever?
New questions
Seismic, Technology-Driven Shifts
Innovation Global Consolidation New Models
R “Ray” Wang Principal Analyst and Founder Constellation Research
© 2010 – 2015 Constella0on Research, Inc. All rights reserved.
52% of the Fortune 500 firms since 2000 are gone
6
© 2010 – 2015 Constella0on Research, Inc. All rights reserved. © 2010 -‐ 2015 Constella0on Research, Inc. All rights reserved. @rwang0
“A digital divide exists between the organiza0ons who have built digital business models and everyone else.” (2013)
-‐ @rwang0
© 2010 – 2015 Constella0on Research, Inc. All rights reserved.
1. Macro trends
2. Dynamic work force
3. Disruptive tech adoption
4. New digital business models
© 2010 -‐ 2015 Constella0on Research, Inc. All rights reserved. © 2010 -‐ 2015 Constella0on Research, Inc. All rights reserved. @rwang0
Five generations of digital workers not by age, but by digital proficiency
Digital Proficiency
1. Digital Na=ves
Comfortable in engaging all digital channels 2. Digital
Immigrants Crossed the chasm into the digital world, forced into engagement with digital channels
3. Digital Voyeurs
Recognize the shiM to digital but not ready to be ac0ve yet themselves
4. Digital Holdouts
Resis0ng the shiM to digital, ignoring the impact
5. Digitally Disengaged
Understand digital but avoiding
engagement on purpose, oMen for
privacy reasons
© 2010 -‐ 2015 Constella0on Research, Inc. All rights reserved. © 2010 -‐ 2015 Constella0on Research, Inc. All rights reserved. @rwang0
Tech convergence powers digital disruption
Mobile Social Cloud Big Data IOT 3D
Prin0ng
Design Thinking Inspired User Experience
© 2010 -‐ 2015 Constella0on Research, Inc. All rights reserved. © 2010 -‐ 2015 Constella0on Research, Inc. All rights reserved. @rwang0
The business model shift is here and we move to outcomes and experiences • Product companies give away product for service revenues.
• Service based businesses sell experiences at varying price points and service levels.
• Experience based businesses selling business models.
• Business model companies sell peace of mind.
© 2010 -‐ 2015 Constella0on Research, Inc. All rights reserved. © 2010 -‐ 2015 Constella0on Research, Inc. All rights reserved. @rwang0
State of boardroom priorities in 2015
Investment in digital presence
Consistent delivery of customer experience (CX)
Digital transforma=on of the business
Rapid response to non-‐tradi=onal compe=tors
Crea=on of insights driven business models
Priori0zed development of high performance culture
Readiness for inorganic growth
Mass automa0on of work and thought
Efficiency in post merger integra0on
Cost reduc0on of regulatory and security compliance
© 2010 – 2015 Constella0on Research, Inc. All rights reserved.
The Battle For Experiences And Outcomes
© 2010 – 2015 Constella0on Research, Inc. All rights reserved.
Transform business models
© 2010 – 2015 Constella0on Research, Inc. All rights reserved.
Medical device companies don’t just sell imaging systems
© 2010 – 2015 Constella0on Research, Inc. All rights reserved.
Disney doesn’t sell theme park tickets
© 2010 – 2015 Constella0on Research, Inc. All rights reserved.
The NFL doesn’t sell tickets to a game or merchandising
© 2010 – 2015 Constella0on Research, Inc. All rights reserved.
Augmented reality adds new and unique experiences
Emergency Exit 150 m
Player Camera 180 M
Referee Stats 180 m
Colleague at Work 225 m
Colleague at Work 450 m
Box Seats 180 m
Player Camera 125 m
Emergency Exit 300 m
© 2010 – 2015 Constella0on Research, Inc. All rights reserved.
Fans seek outcomes not products
Home town pride Status symbols Memorable moments Glory stories
Perfect game days Aspira0onal goals Place to do deals Night on the town
Community outreach and
impact Role models Player and team
engagement Examples of
values
© 2010 – 2015 Constella0on Research, Inc. All rights reserved.
Digital disruption is more than just a technology shift, it’s new business models
© 2010 – 2015 Constella0on Research, Inc. All rights reserved.
Can you support a customer segment of one?
© 2010 – 2015 Constella0on Research, Inc. All rights reserved.
What could you build next with context?
© 2010 -‐ 2015 Constella0on Research, Inc. All rights reserved. © 2010 -‐ 2015 Constella0on Research, Inc. All rights reserved. @rwang0
Help customers progress in tech adoption maturity
Level 1: Discovery
• Discerning hype from reality
• Garnering execu0ve support
Level 2: Experimenta0on
• Iden0fying meaningful metrics
• Incorpora0ng new tech into business models
Level 3: Evangeliza0on
• Choosing the right go forward placorm (tools)
• Fostering internal collabora0on
Level 4: Pervasiveness
• Scaling to match demand
• Ensuring long term funding
Level 5: Realiza0on
• Keeping up with tech innova0ons
• Developing tech governance
© 2010 -‐ 2014 R Wang & Insider Associates, LLC. All rights reserved.
D E E P R
© 2010 – 2015 Constella0on Research, Inc. All rights reserved.
Lessons learned
#SBF14 #CDO @ekolsky @rwang0
© 2010 – 2015 Constella0on Research, Inc. All rights reserved. © 2010 -‐ 2015 Constella0on Research, Inc. All rights reserved. @rwang0
Rule 1: Digital disrup0on is more than just a technology shiM. It’s about transforming business models and how we engage.
© 2010 – 2015 Constella0on Research, Inc. All rights reserved. © 2010 -‐ 2015 Constella0on Research, Inc. All rights reserved. @rwang0
Rule 2: We move from selling products and services to keeping brand promises.
© 2010 – 2015 Constella0on Research, Inc. All rights reserved. © 2010 -‐ 2015 Constella0on Research, Inc. All rights reserved. @rwang0
Rule 3: We serve 5 genera0ons of customers & workers, by digital proficiency, not by age. Digital Na0ves, Digital Immigrants, Digital Voyeurs,
Digital Hold Outs, Digitally Disengaged
© 2010 – 2015 Constella0on Research, Inc. All rights reserved. © 2010 -‐ 2015 Constella0on Research, Inc. All rights reserved. @rwang0
Rule 4: Data is the founda0on of digital business. Every touch point, every click, every digital exhaust is relevant insight.
© 2010 – 2015 Constella0on Research, Inc. All rights reserved. © 2010 -‐ 2015 Constella0on Research, Inc. All rights reserved. @rwang0
Rule 5: If 20 % of your revenue is not an insight stream by 2020, you won’t have a digital biz model.
© 2010 – 2015 Constella0on Research, Inc. All rights reserved. © 2010 -‐ 2015 Constella0on Research, Inc. All rights reserved. @rwang0
Rule 6: You need more than a Chief Digital Officer to infuse digital into your organiza0on. You need a broad bench of Digital CXO’s.
© 2010 – 2015 Constella0on Research, Inc. All rights reserved. © 2010 -‐ 2015 Constella0on Research, Inc. All rights reserved. @rwang0
Rule 7: We must invest in digital ar0sans. Authen0c |Relevant |Transparent| Intelligent
Speedy | Ar0s0c |Non-‐conformist
© 2010 – 2015 Constella0on Research, Inc. All rights reserved.
Next Steps
© 2010 – 2015 Constella0on Research, Inc. All rights reserved.
“Start with the business model, hone in on the outcomes and experiences.”
Discussion
Point of Sale
Onboarding + Adoption
Upsell + Cross-Sell
Retention + Renewal
From CLM to the customer revenue lifecycle
salesforce.com
An innovative company demanding customer adoption across every tier
Innovation Global Consolidation New Models
The next-gen customer in action
Shifting to continuous value delivery requires a focus on customer success
Fortune 100 networking leader
Innovation Global Consolidation New Models
The next-gen customer in action
A new approach to data in the face of disparate systems
VMware
Innovation Global Consolidation New Models
The next-gen customer in action
© 2010 – 2015 Constella0on Research, Inc. All rights reserved. © 2010 -‐ 2015 Constella0on Research, Inc. All rights reserved. @rwang0
Design new experiences
Develop a culture of digital DNA
Apply new business models and technologies to exis=ng infrastructure
Move from gut to data driven decisions
Co-‐create and co-‐innovate with new partners
Five simple steps to digital transforma0on 5
4 3
2 1
Software Hardware Networking Industrials, Healthcare
and Life Science Subscription Revenue
$14.5B Recurring Revenue under management
LOCATIONS WORLDWIDE:
ServiceSource: Helping leading companies maximize customer lifetime value Focused exclusively on customer lifecycle management for 15 years
60% Revenue through channel 240K+ Partners and Resellers
Further Questions?
Visit us at www.servicesource.com