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Beyond HBR’s “truth about customer experience”

Harward Business Review just published a great article about Customer Experience and Journey. See here. The main point of the article is, that managing single touchpoint engagements doesn’t provide sufficient customer experience.

HBR - Truth about customer experience

My advice is: Don’t design just touchpoints – Design chain of events, proactive and reactive. Development and measurement is often done engagement by engagement. The service design approach also highlight such emphasis. I’ve done Customer Journey mapping and methodology development since 2004 and agree with the article, only it’s lacking tools and methods how you should approach the challenge. I can help with that.

I’ve written an article series about customer journey management and you can choose and pick, which areas you are interested in or read them as a series of articles:

  1. Customer Journey FLOW
  2. How to map and study Customer Journey
  3. Customer Journey stage 1: Brand as a platform
  4. Customer Journey stage 2: Initiation
  5. Customer Journey stag 3: Choosing and buying – cross-channel influence

In order to really do Service and CX design for the entire customer relationship, you need to understand that there are very different journeys to begin with.

  • Purchase journey (From awareness to consideration and transaction, Acquisition)
  • Service journeys post purchasing (Using the product or service, value-in-use)
  •  Planned (e.g. Address change, regular maintenance etc.)
  •  Unpredictable (e.g. Product failure, reclamation, insurance coverage, etc.)
  • Delivering a service as a customer journey (taking a cruise or flight, restaurant, using media, etc.)
  • Retail customer journeys (e.g. IKEA store experience)

Once you have both Insight and Topsight level understanding about customer journey in full, you need to take a look inside the company. What organisation bodies are involved with customers, what kind of technical environment direct their operation and what kind of data steers their actions. The reality is, that management reporting practices represent management understanding and decisions. The systems and technical infra on the other hand define how the corporate body acts. In case you need to change the way how the corporate body in total behave, you need to define required technical changes, change management and manage change. In my experience, creating Service Blueprints has been quite effective tool for both challenge recognition at current status mapping and Customer Experience planning.

The potential is absolutely amazing. The customer’s expectations are constantly growing harder to fulfill and companies that are agile enough to cure “Corporate Autism” and take the steps required to move from “inconsideration marketing” and mass mailings to service automation, Customer Experience and Journey design at total relationship level, can win marketshare and increase profits considerably. The business-as-usual approach is no longer sufficient, you need to free the full potential an organisation can offer and tear down silos in order to take advantage of synergies available.

In the big picture, your company must act professionally and fulfill minimum requirement perfectly. Failing these requirements cause criticism and decrease your NPS results. Acting human, being considerate, thoughtful and proactive on the other hand increase the number of people willing to recommend you and increase you NPS score. Succeeding in both cumulate earned trust, which is the foundation for long-lasting and profitable customer relationships and strong brand.

creating customer loyalty and trust_improving NPS

In case you do well, the process will enable you to design lean processes and define the best possible value your business processes can possibly deliver. In my opinion this is the Future for CMO’s position inside the company. It’s not the job for CMO’s to define business process management, but it’s the CMO’s responsibility to make certain that everything the company does, delivers maximum customer value and experience across all customer interfaces

Customer interface reach & effectiveness

In case you can capture customer contacts, you can start servicing and inspiring customers individually and simultaneously your capacity to influence increases. The bigger share of the customers buying in a certain category you have in your database, the more effective means you have to influence their behavior and market dynamics. The ultimate goal is to synchronize customer portfolio with product and service portfolio across all touchpoints and marketing interfaces.

customer portfolio_customer touchpoint & marketing portfolio_product and service portfolio

In my experience the only way to do successful customer journey and experience design and create sustainable management model for it is to do the work upside-down. You start from the actual interfaces, motives, contexts and people. From there you continue inside the company culture, practices and technology and design the strategy level after you understand everything else. Like this:

Bottom-up strategy and data analysis

The Holy Grail of customer value is Symbiosis. Check Symbiosis Strategy – creating the ultimate value  -article here.

This is a video by on Sep 12, 2013, It’s All About the Customer Journey

Author: Toni Keskinen, Marketing Architect & Customer Journey Designer, Toinen PHD

http://www.linkedin.com/in/tonikeskinen

Join The Future CMO Movement LinkedIn Group here

The CMO Survey 2013 & insights – What CMO’s should do now?

Screen Shot 2013-05-29 at 8.41.47 AM

The Duke University’s CMO Survey 2013 results highlighted again the need for marketing and CMO’s to carry more responsponsibility and integrate better with the corporate management and operations. It seems to me that marketing is facing the same evolution that car engines have gone thru since 1960’s. In the 60’s car engines were large, heavy, powerfull and impressive but their gas consumption was just terrible and their efficiency unacceptable in current evaluation. Currently engines are much smaller but deliver a lot of power with very low gas consumption. The big and impressive modern engines have amazing power with acceptable gas consumption. The engine game is all about efficiency, as it should be.

This is the case that CMO’s are facing now too. The way to get there is very much about understanding the big picture (customers, their needs and drivers, choice criteria, their cross-channel behaviour and corporate capacity to serve and deliver great customer experience across touchpoints), managing analytics and customer interface operations. The multitude of digital and analogical touch points has exploded and require very much consideration in order to come up with the essentials and focus on what matters. Marketing budget, according to CMO survey, is currently 10,6% of corporate overall budget and if we add to that retail, sales, customer service, customer managament related technology and online service investments, the customer interface investment in total is eventually what runs the company. This combination is what matters most and should be considered as an entity that must be analyzed and managed in an integrated way. See article Marketing do-or-die -managing customer interfaces

According to the CMO survey 2013:

  • 6% of marketing budget is allocated to marketing analytics and it is expected to grow to 10% over the next three years. However, only 30% of company’s projects use marketing analytics and leverage insights from it
  • Social media share of budget is currently 8,5% and it is expected to be 11,5% by the end of the year and 21,6% in the next five years. However, for the past several year the level of social media integration to marketing strategy has remained at the level of 3,8 in a scale 1=not integrated to 7=very integrated. The spending is expected to more than double but even in current situation the value social media could deliver is not being effectively harnessed.
  • The CMO’s role is weakening in the areas of CRM, new product development, sales, pricing, innovation
  • The company’s next 12 months expectations though highlight success in customer retention and profit increase and the companies are concentrating on diversification strategy (new products – new customers) and organic growth.

To me these results mean, that CMO’s are actually shying away from the corporate center. The best companies are already using Customer Journey design tools and managing customer interfaces in an integrated way, which really enable CMO’s to fine tune their engines and deliver much higher return on investment. These companies are rare though. The results show that in majority of cases CMO’s and marketing department’s role is weakening. Over time this can only mean declining budgets or declining role of CMO.

We are currently living in very rapidly changing environment from which the marketing has best understanding and the board has least understanding. The boards are now more interested in customers than ever, and they need answers. Sheryl Pattek’s (CMO for Forrester research) article highlights how National Association of Corporate Directors (NACD), a group of board-of-director members from the US’s most prestigious companies is discussing the topic: How to keep corporate boards relevant in the 21st century. This is Sheryl’s view on the discussion:

The discussion that morning focused on the need to respond to and keep pace with the rapid change in customer behavior to stay competitive. It also addressed how current board members could keep up with the evolution of customer touchpoints to understand the new digitally-based strategies that are increasingly being shared with them. What I found striking about the discussion after some reflection was that the realization of the critical importance of customer behavior on the future success of top companies has made it all the way to the boardroom. The age of the customer that Forrester first identified in 2011 has really arrived and goes well beyond marketing. Why now? Corporate boards are starting to realize that to provide the strategic guidance and governance that their role requires, they need to better understand customers and how the relationship between them and the companies they direct are changing. And they need to understand it fast. The market is moving and changing too rapidly to be left behind.” (see the full article here: CMOs, Is Joining A Board of Directors Part of Your Career Plan? If Not . . . It Should Be.)

This is the time when marketing can really, finally become corporate center – driver for management change and change management.  Mr. Steven Cook, the founder of Fortune CMO network has made a great presentation about this subject with some cases. Enjoy.

 

SEE ALSO:

FutureCMO definitions

Lost insights and Corporate Blind Spots

Business Design with customer centricity

How to enable smart company and avoid corporate autism

Author: Toni Keskinen, Marketing Architect & Customer Journey Designer

http://www.linkedin.com/in/tonikeskinen

Join FutureCMO Movement LinkedIn Group here
 
 
 
 

Christine Moorman is the Director of The CMO Survey®
http://youtu.be/gqOGVZE-tMo

The CMO Survey 2013 results in full:

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