23 – 26 Oct | São Paulo, Brazil

The 10 Habits of Customer-Centric

Organizations in the Age of Digital
Business
Gene Alvarez

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 "Customer-centric" — designed to keep customers
happy by finding out what they want and dealing
with their problems quickly.

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Why Keep Customers Happy?

shows correlation
between customer
satisfaction and
consumer spending.

Source: http://www.theacsi.org/images/stories/images/economic/16oct_pce-acsi-lg.jpg

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 IT must lead in creating organizational
habits, which keep customers satisfied
in a digital world.

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10 Habits of Customer-Centric Organizations

1. Continuously listening to customers

2. Ensuring follow up with customers on their feedback
3. Acting proactively in anticipating need
4. Respecting customer privacy
5. Building customer empathy into processes and policies
6. Sharing knowledge internally and with customers
7. Motivating employees to stay engaged
8. Acting systematically in improving the customer experience
9. Creating accountability for customer experience improvements
10. Adapting to customer demands and circumstances
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 10 Habits of Customer-Centric Organizations

1
Continuously listening to customers

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 Customers Are Giving You
Information About Themselves
What they're
Who their buying
friends are
Customer
Data
Where they
are
What is important
to them What their
interests are

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Sparking Conversation and Listening to Your Customers

Focus Groups

Fashion magazine Elle offers targeted customers access to a community where they can respond to
surveys, share product feedback and engage directly with Elle's advertisers.

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 10 Habits of Customer-Centric Organizations

2
Ensuring follow up with customers on their feedback

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 Introduce
stevia
sweetener

Introduce
almond milk

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Follow Up to Maintain the Feedback Loop

The customer relationship is

about reciprocal value
Customer centricity means
showing customers you value
Business Customer their input
If you fail to show you are
listening to your customer,
your customer will stop
talking to you

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 10 Habits of Customer-Centric Organizations

3
Acting proactively in anticipating need

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Have you ever lost
a credit card
while traveling?

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You Have the Data. Use It.

— a transient opportunity
Customer Business within the customer
data moment journey, which can be
exploited dynamically.

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Exploit Business House
detects Homeowner
approves
paint defect
Moments to Improve Paint Home

Customer Experiences manufacturer

notified
improvement
retailers notified

Store app checks Car notifies home Offers sent to

with house for improvement retailer that homeowner
other needs shopper is
approaching store

Washing
machine alerted
Car notified of Specific
Example: Using a Paint impending trip offer selected

Purchase to Sell Painting

appointment and Homeowner sends to
Laundry detergent
suggestion
how-to links sent generated
Laundry Detergent Store sends
to homeowner
shopping picklist

additional
shopping Laundry detergent Homeowner orders
suggestions company sends offer for next-day delivery
to homeowner

Catalyst Thing Business Person

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 10 Habits of Customer-Centric Organizations

4
Respecting customer privacy

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Use Data, Don't Abuse Data. Customers Expect …

Transparency in Information will Responsible

knowing how and only be used as storage and
when their data is contextually protection.
being collected. relevant.

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 Almost half of U.S. and U.K. adults ages 20 to
40 say that they wouldn't mind having their
buying behavior tracked so long as it resulted
in relevant offers from organizations.

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 10 Habits of Customer-Centric Organizations

5
Building customer empathy into
processes and policies

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Begin by Understanding the Customer Life Cycle Is Fluid
Abandon Through 2020, businesses
that deploy CRM technology
in such a way that it reflects
Activity Streams
empathy toward the customer
Explore are three times more likely to
fend off a digital disrupter.
Evaluate

Engage
Experience
Drives
Buy
Advocacy
Buying Cycle Again

Inspiration Buy

Abandon Owning Cycle

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Digital Disruption Is Real …
… and it's really happening across all industries
Disruptive Innovation Representative Companies Rationale
Responded to mobile customers want for
Mobile payments Square, Ezetap, Stripe
speed and convenience
Understood sharing culture of millennials and
Social spending Venmo, Splitwise
mobile-first preference

Ride sharing Uber, Lyft Understood the arrogance of the taxi industry

Understood the way customers wanted

Borrowing and investing Betterment, SoFi
to borrow
Built by people who understand education
Online learning Khan Academy, Coursera, Udacity
happens everywhere and at any time
Invested 15 years and millions of dollars to
Auto safety Mobileye
reduce traffic incidents and road deaths

Disease and disability Spark (Therapeutics), ReWalk Robotics Feel deeply about distinct groups of people

Music Live Nation, SoundCloud, Setmine Wanted to change the industry model

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Empathetic Organizations Are Customer-Centric

They focus on:

 Channel convenience for the customer
 Timely response
 Deep knowledge of the customer problem (sound familiar?)
 Being proactive in customer engagement (sound familiar?)
 Being helpful and friendly
 Being fair
 Being honest

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 10 Habits of Customer-Centric Organizations

6
Sharing knowledge internally and with customers

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 Just as Customers Give, They
Would Like to Receive

Information
Customers
Car? Need
VR headset?
Watch?
Drone?
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Blend Human and Artificial Agents

How much should

I pay off this month?

Source: Xiaoi, Creative Virtual

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 By 2020

10% of business-to-consumer
first-level engagement requests will
be taken by VCAs …

… up from less than 1% today.

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 By 2020

AI will disrupt the jobs of

1,000,000
phone-based customer support agents.

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 10 Habits of Customer-Centric Organizations

7
Motivating employees to stay engaged

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 The Causal Theory Very Few Companies Explore

Happier employees ...

Improve Employee Happy employees …
Experience … believe in you, like your work,
 Work harder
have a sense of well-being: Spirit,
 Work with better mind and body:
commitment  Aligned with your purposes
 Work with better focus Increase Employee
 Aligned with your values
 Are secure at work (do not fear
 Stay longer Engagement the arbitrary)
 Help generate sales  Work to benefit themselves and those
around them
 Get more done
 Experience and respect dignity of the
 Drive away the bad individual and group
employees  Feel peaceful
Source: "Pursuing Happiness: The Architecture of Sustainable Change,"
Sonja Lyubomirsky, David Schkade and Kennon M. Sheldon, 2005
Enhance Improve  Hold the desire to help others learn,
Operational Customer succeed and grow in their jobs
Performance Experience

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Explore Defining Moments at Customer and Employee
Journey Intersections
 At Branch
 Client Visit
 At Customer Engagement Centers
 At Social Media
 On the Field
 Chat
 Consumer Messaging Apps
 At Customers' Warehouse
…
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People Do Business With People They Know,
Like and Trust

KNOW LIKE TRUST CONVERSION

Who are you? Do I like you? Are you an What do I do

What do you do? Do I like what you expert? next?

Should I care? have to say? Can you help me? How do I get
Have others had started?
success?
The rise of Customer Centricity in B2B
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 10 Habits of Customer-Centric Organizations

8
Acting systematically in improving
the customer experience

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Build the Vision and Carry It Through

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AT&T Drives Effortless Experience to
Their Partners and Customers
Design Thinking Oriented Approach Two Example Building Block Experiences

A SITE GROUPS B SOLUTION TEMPLATES

 NPS & verbatims
Intake  Market Research Solution Template A
 Analyst input SITE
HQ
REGIONAL
LG 4x
GROUP A OFFICES VNFs
FlexWare
Device
2x
MPLS

SITE DISTR. FLAGSHIP

GROUP B CENTERS STORES Solution Template B
Vision MED 1x
FlexWare MPLS
Device 2 Pick solution
template to be
SITE MEDIUM applied to new
GROUP C RETAIL STORES 2x
1x BB retail site
VNFs

1 Solution Template C
Ideal Picks site group SMALL RETAIL
SITE SM
Building representing site GROUP D STORES FlexWare
WiFi
type to be added Device
Block Quick
Experiences Hit 2x BB

Current
Discovery -> Support
New "medium retail store" site added with medium
Source: AT&T
uCPE, 2x VNFs, 1x MPLS, and 1x BB connections
Singapore Changi Airport Makes Customers Happy

World's best while being Most innovative use of Every case tracked under a
one of the world's busiest infocomm. technology award common system

"We put the passenger, the user, the customer at the centre of everything."
Source: Changi Airport Group, Salesforce
- Tan Lye Teck Executive Vice President
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 10 Habits of Customer-Centric Organizations

9
Creating accountability for customer
experience improvements

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CX Leadership Is a Matrix: CX Leaders Have 12 Direct
Reports and 86 Indirect Reports on Average
Q. How many employees who support the customer experience within your organization report directly to you?
Q. How many employees would you estimate report indirectly from other teams and departments in a dotted line to you,
to support the customer experience?

Number of Direct Reports Number of Indirect Reports

13% 25+ 13% 250+

8% 100 to 249
31% 11 to 24 11% 50 to 99
13% 25 or 49
19% 6 to 10 21% 10 or 24

17% 4 or 5
20% Less than 10
13% 2 or 3
6% 1 13% None
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n
36= CONFIDENTIAL
189 AND PROPRIETARY
Mean = 12.1
I © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
Mean = 85.9
Primary and Secondary Responsibility for the CX Is
Spread Right Across the Organization in Many Departments
Q. Please tell us what department or function within your overall organization has primary responsibility for the customer experience.
Q. What other department or functions within your overall organization have secondary responsibility for the customer experience?
Primary Responsibility for CX Those With Secondary Responsibility for CX
(n = 141) 75% (n = 48) 25%
Marketing 53% Marketing 35%
Sales 49% Sales 58%
Customer Service 47% Customer Service 63%
Operations 44% Operations 58%
Strategy and Planning 38% Strategy and Planning 63%
Supply Chain Management 25% Supply Chain Management 31%
IT 23% IT 46%
New Product Development/R&D 23% New Product Development/R&D 35%
A Centralized Customer Experience Dept. 22% A Centralized Customer Experience Dept. 17%
Human Resources or Human Capital 13% Human Resources or Human Capital 15%
Customer Intelligence Department 13% Customer Intelligence Department 8%
n = 189
Other 4% Other 8%
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Multiple responses allowed
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 10 Habits of Customer-Centric Organizations

10
Adapting to customer demands and circumstances

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 Ava
the 3M helping to make window
iRobot treatments to keep the room comfortable
at the
front
desk

P&G helping to learn what makes a

guest feel the room is clean

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 The world moves very fast … if you can
buy a two-year competitive advantage,
you're doing very well.
- Jim Holthouser, EVP of Global Brands for Hilton

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The Nature of Data and Applications Has Changed

At Home

At the Office In Vehicles

A Shifting Set
of Endpoints

On the Desk With the

At the Site
With the Person Customer
In the Environment
Internal or External

At the Bar/
Away From
Restaurant
Home

In the Store

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More Than Ever, "Time Is Money" …
Digital Business
Needs "Must-Have" Capabilities
Business
Moments
Timely reaction to unexpected, unplanned business events

Situation
Awareness
Decision makers' instant business-state understanding

Real-Time
Insights
Real-time, self-service, unconstrained analytics

Stream
Analytics
Absorbing large volumes of data "on the move"

Classic, "tried and tested" IT approaches won't work anymore!

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 Adaptable Experiences Require:

Advanced
Machine
Learning
Real-Time Decision Predictive
Management Analytics

Case-Based Big,
Processes XaaS Open Data
Web-Scale Computing
Complex-Event Smart
Processing
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Internet of Things Machines
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Bimodal IT Capability Is Required to Support a
Pace-Layered CRM Application Strategy

Systems
+ Mode 2 of - By 2018, IT
Innovation
organizations without
Mode

Governance
a bimodal IT strategy
Change

Systems of
2 Differentiation will find 50% of new
Mode 1 CRM applications
Systems
sourced without
- of Record + their knowledge.

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Use Gartner's Hype Cycles to Identify Your Portfolio
of Innovation
expectations
Expertise Location and Voice of the Customer
Management
DXPs (formerly UXPs) BPM for Customer Service and Support
Emotion Detection/Recognition Analytics for Customer Intelligence
Video Chat for Customer Service Customer Engagement Center Interaction Analytics
Mobile Customer Service Suite Customer Management BPaaS
MDM and Social Data Recorded Video Customer Service
IoT for Customer Service
Customer Journey Analytics
Customer Personality Analysis Virtual Customer Assistants
Customer Engagement
Mobile Field Service Management
Center Workforce Management

Speech Analytics
Customer Engagement Hub Comprehensive CM BPO
Collaborative Customer Interfaces Cloud-Based Customer
Engagement Center Customer Engagement Center
Augmented Reality for Customer Support Quality Management
Social for CRM: Social Media Engagement Applications
Consumer Messaging Applications for CRM Social Feedback
Infonomics Enterprise Feedback Management Work at Home — CM BPO
Management External Peer-to-Peer Communities
Voice-Driven Customer Service Apps
Knowledge On-Premises Customer Engagement Center
Management for MDM of Customer Data
Customer Service Field Service Workforce Optimization
Customer Engagement Center Customer-Best-Next Action
Workforce Optimization Customer Self-Service Suites
Customer Engagement Center
Performance Management As of July 2016
Peak of
Innovation Trough of Plateau of
Inflated Slope of Enlightenment
Trigger Disillusionment Productivity
Expectations
time
Years to mainstream adoption: obsolete
less than 2 years 2 to 5 years 5 to 10 years more than 10 years before plateau
#GartnerSYM
From "Hype Cycle
45 CONFIDENTIAL forPROPRIETARY
AND CRM Customer Service
I © 2017 andInc.
Gartner, Customer Engagement,
and/or its affiliates. 2016," 15
All rights reserved. Julyand
Gartner 2016 (G00290058)
ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
Use Gartner's Hype Cycles to Identify Your Portfolio
of Innovation
expectations
Voice of the Customer

Customer Engagement Center Interaction Analytics

Virtual Customer Assistants

Customer Engagement Hub Social for CRM:

Social Feedback
Management MDM of Customer Data

As of July 2016
Peak of
Innovation Trough of Plateau of
Inflated Slope of Enlightenment
Trigger Disillusionment Productivity
Expectations
time
Years to mainstream adoption: obsolete
less than 2 years 2 to 5 years 5 to 10 years more than 10 years before plateau
#GartnerSYM
From "Hype Cycle
46 CONFIDENTIAL forPROPRIETARY
AND CRM Customer Service
I © 2017 andInc.
Gartner, Customer Engagement,
and/or its affiliates. 2016," 15
All rights reserved. Julyand
Gartner 2016 (G00290058)
ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
 Customer centricity is about putting
customers at the center of your
decision making.

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10 Habits of Customer-Centric Organizations

1. Continuously listening to customers

2. Ensuring follow up with customers on their feedback
3. Acting proactively in anticipating need
4. Respecting customer privacy
5. Building customer empathy into processes and policies
6. Sharing knowledge internally and with customers
7. Motivating employees to stay engaged
8. Acting systematically in improving the customer experience
9. Creating accountability for customer experience improvements
10. Adapting to customer demands and circumstances
#GartnerSYM
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This Week's Roadmap to Customer-Centricity:
Habit Tuesday Wednesday Thursday
Listen "Tutorial: Customer Analytics 101" at "Uncover the Digital Moments Through
8:00 a.m. in Palace II Analytics That Keep Your Customers and
Bring Them Back" at 9:15 a.m. in
Augustus III
Be proactive "Top Emerging Trends and Their Impact on "Defining Moments That Shape Your
Customer Engagement" at 2:45 p.m. in Customer Strategy" at 9:15 a.m. in
Octavius 7 Octavius 7
Respect privacy "To the Point: What Are Customer
Expectations for Privacy?" at 10:30 a.m. in
Octavius 7
Employee "Impacting Performance Through Engaged
engagement Employees" at 4:45 p.m. in Palace I

Act systematically "10 Steps to Plan Your
Next-Generation Customer
Engagement Hub" at 11:30 a.m. in
Neopolitan I
Create
accountability
Adapt "Customer Experience Is Controlled
by the Customer, Not You" at
10:30 a.m. in Octavius 7
"Five Steps to Customer Experience
Transformation" at 8:30 a.m. in Octavius 7
"Must-Have Practices and Pitfalls for
Successful Organizational Change" at
2:45 p.m. in Palace I
"Case Study: Reimagining the Digital
Banking Experience" at 1:15 p.m. in
Octavius 7
"Remaster Your Leadership Behaviors for
Digital Business" at 2:15 p.m. in Palace I