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BUILDING YOUR CX STRATEGY:
SEVEN DIMENSIONS
FOR SUCCESS
1
BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS / 2
Customer experience (CX) is not a new concept. Since
2010, the beginning of what we now call The Age of
the Customer, the balance of power has shifted from
manufacturing and distribution to the highly informed,
constantly connected customer. And companies know that
providing the best experience to these customers is key to
their success.
In fact, 73% of businesses claim that improving CX is a
strategic priority. Yet even with all of this focus on CX, few
companies are getting it right. According to Forrester, only
1% of companies deliver an excellent CX.1
We are years into the Age of the Customer, and the
“why” and “how” of embedding a customer strategy into a
business strategy continues to evolve. CX leaders continue
to excel at adapting, but for thousands more it is still a work
in progress. In this guide, we will share our perspective on
the state of CX today, as well as the core elements of a CX
strategy and how you can deliver on them.
3 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS
Today, mobility, transparency, and an endless supply of choices
allow customers to know more about products and pricing, and
allow brands to build equity on the entirety of their shopping
experience. From researching products, buying on their own
terms, and sharing both the product and service experiences,
customers are firmly in charge. Where the price and the
product used to be the driving force behind purchase decisions,
consumers now want more. In fact, 86% of consumers are
willing to pay more for a better customer experience.2
CX is the brand experience. Understanding and delivering
on brand promises are table stakes, and savvy brands are
using CX as the key differentiator to attract, engage, and retain
customers. High-performing brands also know that delivering
on this promise takes more than a great marketing strategy. The
entire business must be aligned – from vendors and partners,
to manufacturing, supply chain, and customer service. And,
although retailers and service industries have led the way, the
same customer-centered principles apply in financial services,
healthcare, and other industries.
THE STATE OF CX
UX VS. CX
User experience (UX) is your customer's experience with a specific
digital channel, be it your website, an app, or a piece of software.
You can’t have a great CX without a great UX. Your website is often
the first experience a potential buyer has with your company. For
many companies, it is the only experience a customer may have.
But CX is much larger than UX. It’s not just what happens
digitally, or on the screen. It’s what happens directly, indirectly,
online, in the store, and sometimes well after the sale. Each
and every experience your customer has with your products,
your employees, your stores, and your call center make up the
moments that will define your brand.
4 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS
Today, your brand is what your audience says it is. Consumers
are leveraging greater access to information – not just to
understand what’s good for them, to find the best price, or
where to find the products they want, but also to determine
how brands are viewed in the market generally and in their
social circles. Simultaneously, consumers expect stellar
experiences while interacting with these brands, especially the
ones they already know and trust.
THE STATE OF CX
THE CUSTOMER
IS IN CONTROL
81%OF CONSUMERS
CONDUCT ONLINE RESEARCH
BEFORE THEY MAKE
A PURCHASE 4
94%OF B2B BUYERS
CONDUCT ONLINE RESEARCH
BEFORE THEY MAKE
A PURCHASE 5
64%OF CONSUMERS SAY
CUSTOMER EXPERIENCE IS
MORE IMPORTANT THAN PRICE
WHEN DECIDING WHO GETS
THEIR BUSINESS 6
5 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS
To keep pace with these always-on consumers, brands
need to see themselves as more than the sum of the
products they sell for their own sake. For example, the
actual feelings that people have for their iPhones go far
beyond their utility. Apple’s branding and positioning
strike a transcendent chord in a way that captures
the imagination of the user. We sense we are part of
something transformational in the nature of communication
and want be part of it. We think the technology is leading
edge and fun. And, we want to demonstrate to others that
we belong to the future.
Consumer engagement, then, is about tapping into
the essence of not just the utility that these products
provide, but why consumers are inclined (one might
even say moved) to buy one product over another.
In the age of the connected consumer, there’s never
been a better opportunity to do this, day-in-and-
day-out, while adapting to ever-changing consumer
behavior and preferences.
89%OF CONSUMERS BEGAN
DOING BUSINESS WITH A
COMPETITOR FOLLOWING A
POOR CUSTOMER EXPERIENCE 7
6 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS
Your brand is a promise to your customers. From their point
of view, every interaction they have with your organization
is part of the same brand experience. The success of that
experience depends on your ability to deliver on your brand
promise. Successful organizations build lasting relationships
with their customers by inspiring loyalty, and meeting
customer expectations across every interaction with a brand,
product, or service.
Take, for example, The Ritz-Carlton. The luxury hotel has built
a reputation of impeccable service standards based on its
commitment to anticipating the needs of customers. From the
front desk to the cleaning crew, all employees are trained to
be on alert and listen to both the expressed and unexpressed
needs of the guests. As a result, there are countless stories
of how The Ritz-Carlton employees have gone above and
beyond to the delight of their guests. The key to its success
is that through each interaction, The Ritz-Carlton provides the
same great service and upholds the brand promise.
THE STATE OF CX
YOUR BRAND
26%OF CONSUMERS CITE
"TRUST" AND "CONSISTENCY"
AS AN IMPORTANT ELEMENT
OF BRAND LOYALTY 8
BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS / 7
Whether you’re a luxury hotel or a global manufacturer, it is
essential that your CX strategy supports your brand purpose,
promotes your core values, and reflects the style of your
organization. When you understand the mission, vision, and values
of your organization, you can develop an actionable strategy that
delivers your definition of the brand experience. This definition
goes beyond your company’s colors and logo.
Your brand is reflected in the tone and voice of your messaging,
the design patterns of user interfaces, and the conversations
customers have with your organization. Today’s customer expects
all of these things to work together to provide a consistent and
meaningful cross-channel experience that is personally relevant.
When you successfully meet these expectations, you provide your
customers with a reason to return.
B2B CUSTOMERS
ARE MORE THAN TWICE AS LIKELY TO
CONSIDER A BRAND THAT SHOWS
PERSONAL VALUE
OVER BUSINESS VALUE
BECAUSE BUYERS PERCEIVE LITTLE DIFFERENCE
IN THE BUSINESS VALUE THAT DIFFERENT
SUPPLIERS CAN OFFER 9
BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS / 8
Brands and retailers are building loyal customers the way real
people are building loyal relationships with each other through
all kinds of interactions. The true measure of loyalty is not how
many points a customer has racked up, but how often they come
back and how excited they are to share that experience with their
friends, family, and acquaintances.
The connected consumer is highly informed, in control of their
shopping experience, and can turn on a dime. Appealing to the
consumer at all points along the shopper’s journey is fundamental
to building the right CX and engendering true loyalty.
A great CX drives three types of customer loyalty: retention,
enrichment, and advocacy. Companies that deliver on CX tend
to earn more repeat business from their customers, get more
incremental purchases from their customers, and attract new
customers through positive word of mouth.
Retention, enrichment, and advocacy translate into higher
profits. Forrester conducted a study to ensure revenue benefits
of the loyalty built through good CX. They found that each 1%
of improvement in CX quality – as measured by their Customer
Experience Index – resulted in an additional $15 - $175 million in
annual revenues.10
Where your company falls within that range
depends on how easily your customers can switch to a competitor.
The easier it is to switch to a competitor, the more impact your CX
has on your loyalty and revenue. While a competitor may be able
to match you on price and product, a great CX is hard to replicate.
THE STATE OF CX
LOYALTY AND
SWITCHING COSTS
BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS / 8
9 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS
As customers become more accustomed to this new level of
attention and the conveniences that come with it, they come
to expect them everywhere they go. Browsing and comparing
products on a commerce website has never been easier,
honed by the experience of literally millions of checkouts over
the past 20 years. So it’s natural that a patient finding a doctor
would expect the same ability to search, sort, compare, and
learn everything possible about potential providers. In the quest
to innovate for their customers, companies are looking outside
of their traditional industries to find out what else is working,
borrow those experiences, and adapt completely different
business models.
These adaptations and crossovers are becoming more
pervasive. Lululemon is not just moving product and tapping
into a fashion movement. It has come to the forefront of a
healthy lifestyle movement. Kroger is not just a place to stock
up the pantry. It has evolved into a shopping event, complete
with sushi and craft beer bars. Insurance companies are now
cultivating loyalty with their members by providing wellness
services and medical services faster and more thoroughly
than the providers in their networks. Caterpillar is driving more
sensor data in a single mine than the original Apollo spacecraft
did in a trip to the moon.
THE STATE OF CX
INDUSTRY AND
CATEGORY CROSSOVER
In a healthcare industry known for inconvenient and frustrating
processes, Kaiser Permanente is committed to meeting the
rising expectations for patient experience. One of its divisions,
KP on Call, has added more self-service and online options
to reduce the need for in-person care. We worked with them
to offer features like web self-service and Nurse Chat, which
provide online interviews, prescription management, and
follow-up care plans, resulting in more convenient, personalized
care that can turn a potentially frustrating experience into a
positive one for all parties involved.
/ INDUSTRY CROSSOVER CLIENT SUCCESS STORY
KAISER PERMANENTE
BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS / 10
The data is in, and better CX correlates directly with higher
revenue growth.
PRIORITIES
The 2016 Econsultancy survey of digital marketing trends
reveals CX as the single most exciting opportunity, ahead
of content marketing, mobile, personalization, and social.11
Walker Information reports that experience is a bigger
priority than product and price, and will grow as a priority
through at least 2020.12
PROFITS
When companies prioritize CX, they generate 60% higher
profits than their competitors.13
Retention is a key indicator
of great CX, and a 10% increase in customer retention yields
a 30% increase in the value of the company. A 5% increase
in customer retention can increase profits by 25-125%.14
PERFORMANCE
CX leaders are outperforming the S&P 500 index by more
than 35 points over an eight-year period; those that are
lagging behind in CX underperform by almost 45 points.15
In addition, Gartner’s 2014 CEO Survey shows revenue
growth as the most pressing strategic mandate in business
today. When asked for the top priority in technology-related
business capabilities to support this growth agenda, CEOs
identified digital marketing, followed closely by CX.
CX MEANS BUSINESS
BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS / 11
It’s almost impossible to check your news feed without hearing about
a new technology disrupting the status quo or trying to solve a new
problem. Innovation, often muddled with invention, disruption, and high
tech, has many definitions and interpretations. We think of innovation in
simpler terms: something new to your business that satisfies an unmet
customer need. This connection to customer needs is why the best and
most sustainable innovations are inextricably linked to CX.
Successful companies aren’t resting on their laurels, but are constantly
re-evaluating how to learn from and engage the buyer. Instead of just
outwitting the competition, industry leaders work every day to empower
customers even more, because that empowerment is what they expect
and demand. But in practical terms, there will be more needs and
more ideas than your firm can handle. Staying focused and managing
innovation and CX as a portfolio is key to investing in the right changes
at the right time.
If your company has decided to focus on CX, then you are achieving
parity. You become competitive by meeting your customers’ needs,
but you will remain competitive by finding and satisfying their unmet
needs. Five years ago, omni-channel commerce was a differentiator
for brick-and-mortar retailers. Today it is table stakes, and tomorrow
your competitors are releasing something else that customers will soon
come to expect.
INNOVATE OR DIE
BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS / 12
Good investment strategies rely on a diverse portfolio, and we
subscribe to the 70/20/10 model for innovation.
As a starting point, 70% of your spend is applied to the experiences
that your customers expect now. This means ensuring that you
are delivering on the table-stakes experiences that customers
simply expect from you and your competitors. Twenty percent is
applied to what is in the marketplace – but new to you – and what
your customers will come to expect. Ten percent of your spend
should focus on what is next and will become truly innovative
and differentiating.
Innovation is not just for startups, labs, and garages. Customer-
focused brands know that it’s not the big that eat the small. It’s the
fast that eat the slow.
70%
20%
10%
OF SPENDING IS APPLIED
TO THE EXPERIENCES THAT
CUSTOMERS EXPECT
OF SPENDING IS APPLIED
TO WHAT IS IN THE
MARKETPLACE
OF SPENDING IS APPLIED
TO FOCUSING ON
WHAT IS TO COME
BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS / 13
CX as a strategy depends on ongoing top-down and
company-wide commitment to creating, delivering, and
sustaining the experiences that matter to their customers.
Creating great experiences depends on mining customer
insights, aligning them with your overall business strategy,
and combining them through a thoughtful design process
to share them with your customers. Technology is now
essential to delivering the experiences that customers have
come to expect, and that same technology is also crucial to
sense, measure, and react to customers’ actual experiences.
Finally, the ongoing operational and cultural commitment
to adapt and change with your customers is essential to
sustaining their loyalty.
Our history with hundreds of clients during the Age of the
Customer has revealed seven dimensions that are common
to the companies and brands with the most compelling
customer experiences. Understanding these dimensions is
an important step in evaluating your own ability to create,
deliver, and sustain a great customer experience. Let's look
at each of these seven dimensions in more detail.
7 DIMENSIONS OF AN EFFECTIVE CX STRATEGY
7 DIMENSIONS OF AN
EFFECTIVE CX STRATEGY
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Customer Insight
BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS / 14
Before you can provide great experiences, you first have to
create them. And before creating those experiences, you need
to understand your customer and their unique needs. Customer
insights are the linchpin of a strong CX commitment, and great
companies apply that knowledge strategically with a deliberate
design approach.
The Create phase encompasses three dimensions: Customer
Insight, Strategy, and Design Process.
1. CUSTOMER INSIGHT
By gathering customer insights through research and data, you’re
able to understand your customer’s needs and establish goals as
a means of creating new and better experiences. It is critical to talk
with your most valued customers to understand their expectations
and how you measure up today. You need to know which
touchpoints and channels are involved in their customer journey
and how satisfied they are with those interactions.
An effective CX plan addresses each of the tasks outlined
below, and includes insight and data to clearly understand the
current situation.
// Customer personas that include a 'most important tasks' ranking
// Customer journey maps that have been validated with data and
customer research
// Insight into the role, importance, and level of customer
satisfaction with every touch point in their journey
// Understanding of how mobile devices are used
to interact with your company
// Understanding of CX satisfaction today, with the ability to
drill down into the five to eight key drivers
// Understanding of customer loyalty strength, including
intent to repurchase and advocacy
// A system to collect customer feedback and use it to drive
CX innovation and improvements
To truly understand your customers, it is also important to
gather information from your customer-facing employees.
These employees are a means to understanding what
barriers exist between your customers and the ideal
experience. They have the day-to-day experience and insight
into your company’s operational or technological barriers,
and are often a great source of “quick wins.”
CREATE
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15 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS
CUSTOMER INSIGHT BEST PRACTICE
CREATE A DETAILED CUSTOMER
JOURNEY MAP
A good customer journey map illustrates every interaction a
customer makes while completing a transaction. A best-in-class
map incorporates data and customer input to identify pain
points and the best ways to eliminate them. Despite the fact that
mapping is a proven best practice, many companies are missing
a huge opportunity to improve CX by completing this work.
In a recent study, only 54% of survey respondents confirmed
that they have completely mapped out or are in the process of
mapping out the customer journey, within the last year.9
When Hunter Douglas set out to build a product visualization
application for its customers, some of its competitors already had
similar tools. But Hunter Douglas was committed to finding out what
its customers were missing, and then delivering on those needs.
We conducted in-depth consumer interviews, market analysis, and
usability and prototype testing to guide our app development strategy.
Our research showed that consumers – eager for proof they were
making a smart and stylish investment – wanted to preview the
window fashions up close, in detail, and in room settings. We brought
this insight to life with the iMagine™ Design Center application. Since
the launch, visitors are twice as likely to engage in purchase intent
activities such as searching for a dealer when interacting with the app.
/ CUSTOMER INSIGHT CLIENT SUCCESS STORY
HUNTER DOUGLAS
BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS / 15
16 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS
2. STRATEGY
Your CX strategy is a description of the experience that you intend
to deliver and the associated value that you offer your customers.
Your strategy provides direction and prioritization of activities in
concert with enterprise goals and customer requirements.
To be most effective, it must be driven by customer needs, be
supported by the employees who deliver it every day, and
deliver on your brand promise and value proposition.
An effective CX strategy includes:
// A clearly articulated vision with supporting strategies
// Competitive insight that enables you to differentiate your CX
// Organizational alignment to effectively support an omni-
channel business
// Success metrics that connect business performance with
CX excellence
// A road map to guide the implementation of approved projects
// A capital budget that provides sufficient resources to execute
the plan
A thoughtful CX strategy establishes the vision for your company,
but the benefits aren’t realized until the strategy is executed. With
this in mind, the strategy must also include a road map to guide
the executional effort, a capital budget to effectively fund the
required investments, and key performance indicators (KPI) to
evaluate the outcomes of the program.
STRATEGY BEST PRACTICE
CREATE A CX ROAD MAP AND DEFEND IT
It takes a tremendous amount of work to develop an effective
CX road map. Once in place, it is essential that all future
projects demonstrate how they will advance the company’s
CX effectiveness and are vetted and prioritized accordingly.
It is equally important to remember that diluting funding and
resources in an attempt "to do more" typically undermines
your organization’s probability of success.
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3. DESIGN PROCESS
The design process is used to envision, plan, and create CX
using a mix of science and art, technology, and operational
problem solving. The most successful CX design initiatives are
highly collaborative, with active involvement by the business,
creative, and technology teams. These teams clarify project
goals, develop a solid foundation of customer needs, apply
design thinking principles such as rapid prototyping, and
perform ongoing evaluation of customers through various
phases of development.
CX leaders follow these best practices for all digital
design projects:
// Project objectives are linked to a CX KPI and are justified
with CX insight
// UX and digital design standards are effectively documented
to ensure consistency across all digital touchpoints
// An iterative design methodology is used to create an end
product that meets user expectations
// The project plan is structured to support collaboration
between UX, technology, and marketing
// A UX leader is empowered to maintain CX integrity as
inevitable executional compromises are made
// A formal evaluation is conducted with customers to validate
effectiveness prior to launch
DESIGN BEST PRACTICE
USE DESIGN THINKING TO CREATE
DESIRED OUTCOMES
Many teams are still getting comfortable with the principles
of design thinking, but they are committed to the process.
Use cross-functional teams and short cycles to improve
each time you share a prototype and convert the feedback
into a better solution.
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The best CX strategy will fall short unless the infrastructure,
processes, and other components are defined and operational.
In order to deliver an exceptional CX, you must have an
effective combination of technology, operational processes,
and measurement in place.
The Deliver phase encompasses two dimensions: Enabling
Technologies and Operations.
4. ENABLING TECHNOLOGIES
Selecting the right technology solutions to enable your desired
CX can be a daunting task. Finding solutions that enable your
CX vision, working through integration issues, and justifying
the expense are a few of the complex issues that must be
addressed. Fortunately, there are well-established reference
architectures and methodologies to guide organizations
through technology adoption.
A foundational element is the definition of business, functional,
and technical capabilities that align with the most compelling
CX. Modern systems are built for scale and ongoing refactoring
in mind to be agile enough to meet changing expectations of
your customers.
DELIVER
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19 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS
To keep pace with CX leaders, you’ll want to pursue a technology
solution that enables you to:
// Deliver an outstanding CX across all customer channels
and device types
// Efficiently manage content for multiple channels, including
digital and physical, without extensive customization
// Optimize your efforts through A/B testing, real-time monitoring
and rapid content changes
// Deliver highly relevant and personalized information, with
behavior-based triggers
// Create and leverage rich customer profiles by integrating
multiple data sources into a single view
// Meet all your customer’s expectations when using a mobile
device to do business with you
ENABLING TECHNOLOGIES BEST PRACTICE
As a first step toward alignment of your CX strategy and the
technology needed to enable it, you should discuss these five issues
with your team:
// How can we deliver a consistent experience across all channels?
// How can we improve the effectiveness of our content management?
// How can we boost the impact and ROI of our marketing campaigns?
// What is the best way for us to provide a more personalized
experience?
// How can we consolidate all of our data so that we have a single view
of the customer?
THE COMPLETE GUIDE TO YOUR CX STRATEGY / 19
/ OUR TECHNOLOGY PARTNERS
We maintain strategic relationships with the world’s leading
technology innovators, including:
// IBM
// Microsoft
// Oracle
// Adobe
// Salesforce
// And more
To see all of our partnerships, visit Perficient.com/partners.
BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS / 19
20 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS
5. OPERATIONS
Many companies have invested heavily in a technology platform,
only to implement the basic functionality and miss opportunities by
not optimizing the analytics, having the platform rejected by business
units that don’t want to change, or by not modifying policies that
would enable employees to deliver a superior CX.
CX leaders have recognized that an exceptional customer
experience isn’t possible without operational improvements that
create a more agile, responsive organization. They are rethinking
roles and responsibilities, reorganizing to improve collaboration,
and empowering employees with new decision rights. They are
introducing an agile/lean methodology to make faster decisions and
implement with fewer surprises, plus modifying their governance
policies to deliver a consistent CX across divisions and products,
with managed oversight of third parties.
We see excellence across six operational indicators:
// A CX champion is actively engaged and empowered to make
decisions across functional groups
// A clearly defined escalation system is in place to manage
and resolve CX issues
// The UX, marketing, and technology teams collaborate on a
regular basis without a corporate mandate, and are able to
reach compromises without management intervention
// The core team is actively applying the principles of
agile methodology
// A change management plan is created for every major initiative
// Team resources are thoughtfully assigned to important CX
projects, with skill set and capacity as high priorities
OPERATIONS BEST PRACTICE
ENSURE YOUR OPERATIONS SUPPORT
CX EXCELLENCE
CX leaders understand that key functional teams have
to work effectively together to succeed, but it’s naïve to
believe that disagreements will magically disappear. It is
imperative that operational policies and procedures be
developed to proactively deal with the issues that are
most frequently encountered on complex digital projects.
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A thoughtful plan serves as the foundation of CX improvement –
and technology and operations play a critical role – but the soul
of the CX experience is the culture of your organization. Your CX
plan must address the ways that your team will maintain a high
level of performance, knowing that customer expectations will
continue to change, and your organization will have to adapt,
and employees will be asked to accept new responsibilities.
Customer focus is constantly reinforced through leadership and
nourished through ongoing sensing, feedback, and measurement.
An effective organization has a team of people who do their job
well on a daily basis. An exceptional organization has a team that
seeks opportunities to exceed customer expectations and knows
that a little extra effort to take care of a customer is invaluable.
The Sustain phase encompasses two dimensions: Measurement
and Culture.
SUSTAIN
22 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS
6. MEASUREMENT
Developing an effective measurement system involves the
metrics, technologies, and techniques used to track and report
on your CX effectiveness. Ironically, there has never been more
available data for companies that are seeking to improve their
CX, yet many continue to struggle with actionable insight.
Most companies have developed basic capabilities in this area.
They have clearly defined CX metrics and KPIs that align with
CX goals, and are able to accurately track the primary metrics
across their digital properties. They have also incorporated the
most important information into their standard management
reports. A subset of this group is able to measure behavior
and the effectiveness of digital touchpoints, and has assigned
financial values to non-transactional actions and tasks.
MEASUREMENT BEST PRACTICES
CX leaders should follow these best practices to monitor
and improve their effectiveness:
// The analytics program has executive sponsorship, sufficient
resources and properly trained personnel
// Have the ability to measure behavior and effectiveness across all
digital touchpoints
// CX goals have been clearly defined with KPIs across the entire CX
// Analytics data is readily available and actively communicated within
the organization
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23 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS
7. CULTURE
Your company’s culture is the shared attitudes, beliefs,
and values held by leadership and employees, which are
demonstrated through their actions. To create a customer-
centric culture it takes effort across the organization, from top to
bottom. While leaders are responsible for the oversight of this
CX focus, each employee needs to be enabled and encouraged
to make customer-centric decisions in their daily work.
CX leaders strongly agree with these culture-building principles:
// Leadership actively supports CX efforts and results
// Employees are empowered to create a memorable CX
// Key functional groups share many of the same CX goals
// Employees have sufficient skills and experience to execute
the CX strategy
// The organization is willing to take risks and understands that
some projects will fail
// Financial incentives and career advancement opportunities
are properly aligned with CX KPIs
// CX feedback and metrics are reviewed with employees on a
regular basis
CULTURE BEST PRACTICE
EVALUATE YOUR ORGANIZATIONAL STRUCTURE
CX leaders understand that their organization must continually
adapt to thrive in an omni-channel world. We strongly recommend
that your management team discuss these three issues:
// What is our management process to balance our corporate
CX goals with functional group goals?
// Are we modifying our job roles to consider the CX tasks and
technology skills that are necessary?
// Do we need to change our organizational structure to break down
silos and improve cross-functional collaboration?
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Customer Insight
Operations
Design
Process
Enabling
Technologies
Measurement
24 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS
How is your company delivering on these seven dimensions?
Where are you getting it right with your CX, and where do
you need some work? Take our CX assessment to see where
you stand today.
WHAT’S MY CX SCORE?
TAKE OUR
CX ASSESSMENT
Contact us to learn more about CX IQ and CX AMP, our
jumpstart tools designed to help you gain better focus
on your CX, create breakthrough visualization, and build
consensus for further innovation.
Sales@perficient.com
GET STARTED NOW
25 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS
MEET THE AUTHORS
BRIAN FLANAGAN
DIRECTOR, DIGITAL EXPERIENCE
For more than 20 years Brian has worked with
clients to design and execute cutting-edge user
experiences. As a digital experience strategist,
he is responsible for driving digital strategy for
enterprise clients and oversight in delivering best
practices. In this role, Brian keeps Perficient Digital
and its clients on the cutting edge of new design
strategies for next-generation technologies to
consistently exceed client and peer expectations.
JIM HERTZFELD
PRINCIPAL, STRATEGY AND INNOVATION
Jim leads digital strategy and innovation
for Perficient Digital. He has nearly 25 years
of experience in digital strategy, customer
experience, and delivery, and he has provided
client leadership to enterprise and strategic
initiatives at companies like Target, Luxottica, and
Honda. His areas of focus include commerce,
digital marketing, and complex systems
integration in retail and consumer markets.
GREGG SAMPSON
DIRECTOR, DIGITAL STRATEGY
Gregg offers a unique blend of digital marketing,
commerce, and traditional marketing expertise. He
specializes in creating customer-driven digital strategies
that are supported with research and analytics, and
driving organizational alignment around customer
experience improvement initiatives. Gregg brings
more than 25 years of experience with Fortune 1000
companies in both B2C and B2B industries, with proven
success across every phase of the customer life cycle.
SOURCES:
1 Forrester, "Forrester’s CX Index Ranks the Brands that Deliver the Best Customer Experience"
2 Cloud Cherry, "The Rules of CX Are Changing"
3 Super Office, "32 Customer Experience Statistics You Need to Know for 2017"
4 Ad Week, "81% of Shoppers Conduct Online Research Before Buying"
5 Brafton, "94 Percent of B2B Buyers Research Online for Purchase Decisions"
6 CMO Council, "Can We Future-Proof Customer Engagement?"
7 New Voice Media, "The Multibillion Dollar Cost of Poor Customer Service"
8 Rare, "Defining Loyalty"
9 Marketing Week, "B2B Branding: Where Is the Love?"
10 Forrester, "Transforming Your Organization into a Customer Experience Powerhouse"
11 Econsultancy, "Quarterly Digital Intelligence Briefing: 2016 Digital Trends"
12 Walker Info, "Customers 2020"
13 Gartner Group, "Leading on the Edge of Chaos"
14 Retention Science, "Customer Retention Should Outweigh Customer Acquisition"
15 Watermark, "The Loyalty Lift"
16 Altimeter Group, "2016 State of Digital Transformation"
BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS / 26
ABOUT
PERFICIENT DIGITAL
We architect systems of customer delight. We move
at the speed-of-culture. We exist to delight our clients,
by relentlessly delighting their customers. We are what
happens when more than 200 of the most talented digital
strategists, design pros, brand shapers, digital marketers,
data scientists and creative coders all believe one thing
to be true — exceptional customer experiences always
translate to positive ROI for our clients.
Perficient Digital blends the strategic imagination of an
agency with the deep technical acumen of Perficient’s
established consultancy to deliver exceptional customer
experiences for the world’s biggest brands.
PerficientDigital.com
@PRFTDigital
Facebook.com/PerficientDigital
Blogs.Perficient.com/PerficientDigital

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BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS

  • 1. perficientdigital.com BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS
  • 2. 1 BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS / 2 Customer experience (CX) is not a new concept. Since 2010, the beginning of what we now call The Age of the Customer, the balance of power has shifted from manufacturing and distribution to the highly informed, constantly connected customer. And companies know that providing the best experience to these customers is key to their success. In fact, 73% of businesses claim that improving CX is a strategic priority. Yet even with all of this focus on CX, few companies are getting it right. According to Forrester, only 1% of companies deliver an excellent CX.1 We are years into the Age of the Customer, and the “why” and “how” of embedding a customer strategy into a business strategy continues to evolve. CX leaders continue to excel at adapting, but for thousands more it is still a work in progress. In this guide, we will share our perspective on the state of CX today, as well as the core elements of a CX strategy and how you can deliver on them.
  • 3. 3 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS Today, mobility, transparency, and an endless supply of choices allow customers to know more about products and pricing, and allow brands to build equity on the entirety of their shopping experience. From researching products, buying on their own terms, and sharing both the product and service experiences, customers are firmly in charge. Where the price and the product used to be the driving force behind purchase decisions, consumers now want more. In fact, 86% of consumers are willing to pay more for a better customer experience.2 CX is the brand experience. Understanding and delivering on brand promises are table stakes, and savvy brands are using CX as the key differentiator to attract, engage, and retain customers. High-performing brands also know that delivering on this promise takes more than a great marketing strategy. The entire business must be aligned – from vendors and partners, to manufacturing, supply chain, and customer service. And, although retailers and service industries have led the way, the same customer-centered principles apply in financial services, healthcare, and other industries. THE STATE OF CX UX VS. CX User experience (UX) is your customer's experience with a specific digital channel, be it your website, an app, or a piece of software. You can’t have a great CX without a great UX. Your website is often the first experience a potential buyer has with your company. For many companies, it is the only experience a customer may have. But CX is much larger than UX. It’s not just what happens digitally, or on the screen. It’s what happens directly, indirectly, online, in the store, and sometimes well after the sale. Each and every experience your customer has with your products, your employees, your stores, and your call center make up the moments that will define your brand.
  • 4. 4 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS Today, your brand is what your audience says it is. Consumers are leveraging greater access to information – not just to understand what’s good for them, to find the best price, or where to find the products they want, but also to determine how brands are viewed in the market generally and in their social circles. Simultaneously, consumers expect stellar experiences while interacting with these brands, especially the ones they already know and trust. THE STATE OF CX THE CUSTOMER IS IN CONTROL 81%OF CONSUMERS CONDUCT ONLINE RESEARCH BEFORE THEY MAKE A PURCHASE 4 94%OF B2B BUYERS CONDUCT ONLINE RESEARCH BEFORE THEY MAKE A PURCHASE 5 64%OF CONSUMERS SAY CUSTOMER EXPERIENCE IS MORE IMPORTANT THAN PRICE WHEN DECIDING WHO GETS THEIR BUSINESS 6
  • 5. 5 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS To keep pace with these always-on consumers, brands need to see themselves as more than the sum of the products they sell for their own sake. For example, the actual feelings that people have for their iPhones go far beyond their utility. Apple’s branding and positioning strike a transcendent chord in a way that captures the imagination of the user. We sense we are part of something transformational in the nature of communication and want be part of it. We think the technology is leading edge and fun. And, we want to demonstrate to others that we belong to the future. Consumer engagement, then, is about tapping into the essence of not just the utility that these products provide, but why consumers are inclined (one might even say moved) to buy one product over another. In the age of the connected consumer, there’s never been a better opportunity to do this, day-in-and- day-out, while adapting to ever-changing consumer behavior and preferences. 89%OF CONSUMERS BEGAN DOING BUSINESS WITH A COMPETITOR FOLLOWING A POOR CUSTOMER EXPERIENCE 7
  • 6. 6 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS Your brand is a promise to your customers. From their point of view, every interaction they have with your organization is part of the same brand experience. The success of that experience depends on your ability to deliver on your brand promise. Successful organizations build lasting relationships with their customers by inspiring loyalty, and meeting customer expectations across every interaction with a brand, product, or service. Take, for example, The Ritz-Carlton. The luxury hotel has built a reputation of impeccable service standards based on its commitment to anticipating the needs of customers. From the front desk to the cleaning crew, all employees are trained to be on alert and listen to both the expressed and unexpressed needs of the guests. As a result, there are countless stories of how The Ritz-Carlton employees have gone above and beyond to the delight of their guests. The key to its success is that through each interaction, The Ritz-Carlton provides the same great service and upholds the brand promise. THE STATE OF CX YOUR BRAND 26%OF CONSUMERS CITE "TRUST" AND "CONSISTENCY" AS AN IMPORTANT ELEMENT OF BRAND LOYALTY 8
  • 7. BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS / 7 Whether you’re a luxury hotel or a global manufacturer, it is essential that your CX strategy supports your brand purpose, promotes your core values, and reflects the style of your organization. When you understand the mission, vision, and values of your organization, you can develop an actionable strategy that delivers your definition of the brand experience. This definition goes beyond your company’s colors and logo. Your brand is reflected in the tone and voice of your messaging, the design patterns of user interfaces, and the conversations customers have with your organization. Today’s customer expects all of these things to work together to provide a consistent and meaningful cross-channel experience that is personally relevant. When you successfully meet these expectations, you provide your customers with a reason to return. B2B CUSTOMERS ARE MORE THAN TWICE AS LIKELY TO CONSIDER A BRAND THAT SHOWS PERSONAL VALUE OVER BUSINESS VALUE BECAUSE BUYERS PERCEIVE LITTLE DIFFERENCE IN THE BUSINESS VALUE THAT DIFFERENT SUPPLIERS CAN OFFER 9
  • 8. BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS / 8 Brands and retailers are building loyal customers the way real people are building loyal relationships with each other through all kinds of interactions. The true measure of loyalty is not how many points a customer has racked up, but how often they come back and how excited they are to share that experience with their friends, family, and acquaintances. The connected consumer is highly informed, in control of their shopping experience, and can turn on a dime. Appealing to the consumer at all points along the shopper’s journey is fundamental to building the right CX and engendering true loyalty. A great CX drives three types of customer loyalty: retention, enrichment, and advocacy. Companies that deliver on CX tend to earn more repeat business from their customers, get more incremental purchases from their customers, and attract new customers through positive word of mouth. Retention, enrichment, and advocacy translate into higher profits. Forrester conducted a study to ensure revenue benefits of the loyalty built through good CX. They found that each 1% of improvement in CX quality – as measured by their Customer Experience Index – resulted in an additional $15 - $175 million in annual revenues.10 Where your company falls within that range depends on how easily your customers can switch to a competitor. The easier it is to switch to a competitor, the more impact your CX has on your loyalty and revenue. While a competitor may be able to match you on price and product, a great CX is hard to replicate. THE STATE OF CX LOYALTY AND SWITCHING COSTS BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS / 8
  • 9. 9 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS As customers become more accustomed to this new level of attention and the conveniences that come with it, they come to expect them everywhere they go. Browsing and comparing products on a commerce website has never been easier, honed by the experience of literally millions of checkouts over the past 20 years. So it’s natural that a patient finding a doctor would expect the same ability to search, sort, compare, and learn everything possible about potential providers. In the quest to innovate for their customers, companies are looking outside of their traditional industries to find out what else is working, borrow those experiences, and adapt completely different business models. These adaptations and crossovers are becoming more pervasive. Lululemon is not just moving product and tapping into a fashion movement. It has come to the forefront of a healthy lifestyle movement. Kroger is not just a place to stock up the pantry. It has evolved into a shopping event, complete with sushi and craft beer bars. Insurance companies are now cultivating loyalty with their members by providing wellness services and medical services faster and more thoroughly than the providers in their networks. Caterpillar is driving more sensor data in a single mine than the original Apollo spacecraft did in a trip to the moon. THE STATE OF CX INDUSTRY AND CATEGORY CROSSOVER In a healthcare industry known for inconvenient and frustrating processes, Kaiser Permanente is committed to meeting the rising expectations for patient experience. One of its divisions, KP on Call, has added more self-service and online options to reduce the need for in-person care. We worked with them to offer features like web self-service and Nurse Chat, which provide online interviews, prescription management, and follow-up care plans, resulting in more convenient, personalized care that can turn a potentially frustrating experience into a positive one for all parties involved. / INDUSTRY CROSSOVER CLIENT SUCCESS STORY KAISER PERMANENTE
  • 10. BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS / 10 The data is in, and better CX correlates directly with higher revenue growth. PRIORITIES The 2016 Econsultancy survey of digital marketing trends reveals CX as the single most exciting opportunity, ahead of content marketing, mobile, personalization, and social.11 Walker Information reports that experience is a bigger priority than product and price, and will grow as a priority through at least 2020.12 PROFITS When companies prioritize CX, they generate 60% higher profits than their competitors.13 Retention is a key indicator of great CX, and a 10% increase in customer retention yields a 30% increase in the value of the company. A 5% increase in customer retention can increase profits by 25-125%.14 PERFORMANCE CX leaders are outperforming the S&P 500 index by more than 35 points over an eight-year period; those that are lagging behind in CX underperform by almost 45 points.15 In addition, Gartner’s 2014 CEO Survey shows revenue growth as the most pressing strategic mandate in business today. When asked for the top priority in technology-related business capabilities to support this growth agenda, CEOs identified digital marketing, followed closely by CX. CX MEANS BUSINESS
  • 11. BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS / 11 It’s almost impossible to check your news feed without hearing about a new technology disrupting the status quo or trying to solve a new problem. Innovation, often muddled with invention, disruption, and high tech, has many definitions and interpretations. We think of innovation in simpler terms: something new to your business that satisfies an unmet customer need. This connection to customer needs is why the best and most sustainable innovations are inextricably linked to CX. Successful companies aren’t resting on their laurels, but are constantly re-evaluating how to learn from and engage the buyer. Instead of just outwitting the competition, industry leaders work every day to empower customers even more, because that empowerment is what they expect and demand. But in practical terms, there will be more needs and more ideas than your firm can handle. Staying focused and managing innovation and CX as a portfolio is key to investing in the right changes at the right time. If your company has decided to focus on CX, then you are achieving parity. You become competitive by meeting your customers’ needs, but you will remain competitive by finding and satisfying their unmet needs. Five years ago, omni-channel commerce was a differentiator for brick-and-mortar retailers. Today it is table stakes, and tomorrow your competitors are releasing something else that customers will soon come to expect. INNOVATE OR DIE
  • 12. BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS / 12 Good investment strategies rely on a diverse portfolio, and we subscribe to the 70/20/10 model for innovation. As a starting point, 70% of your spend is applied to the experiences that your customers expect now. This means ensuring that you are delivering on the table-stakes experiences that customers simply expect from you and your competitors. Twenty percent is applied to what is in the marketplace – but new to you – and what your customers will come to expect. Ten percent of your spend should focus on what is next and will become truly innovative and differentiating. Innovation is not just for startups, labs, and garages. Customer- focused brands know that it’s not the big that eat the small. It’s the fast that eat the slow. 70% 20% 10% OF SPENDING IS APPLIED TO THE EXPERIENCES THAT CUSTOMERS EXPECT OF SPENDING IS APPLIED TO WHAT IS IN THE MARKETPLACE OF SPENDING IS APPLIED TO FOCUSING ON WHAT IS TO COME
  • 13. BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS / 13 CX as a strategy depends on ongoing top-down and company-wide commitment to creating, delivering, and sustaining the experiences that matter to their customers. Creating great experiences depends on mining customer insights, aligning them with your overall business strategy, and combining them through a thoughtful design process to share them with your customers. Technology is now essential to delivering the experiences that customers have come to expect, and that same technology is also crucial to sense, measure, and react to customers’ actual experiences. Finally, the ongoing operational and cultural commitment to adapt and change with your customers is essential to sustaining their loyalty. Our history with hundreds of clients during the Age of the Customer has revealed seven dimensions that are common to the companies and brands with the most compelling customer experiences. Understanding these dimensions is an important step in evaluating your own ability to create, deliver, and sustain a great customer experience. Let's look at each of these seven dimensions in more detail. 7 DIMENSIONS OF AN EFFECTIVE CX STRATEGY 7 DIMENSIONS OF AN EFFECTIVE CX STRATEGY 07 02 03 04 05 06 Culture Strategy Operations Design Process Enabling Technologies Measurement 01 Customer Insight
  • 14. BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS / 14 Before you can provide great experiences, you first have to create them. And before creating those experiences, you need to understand your customer and their unique needs. Customer insights are the linchpin of a strong CX commitment, and great companies apply that knowledge strategically with a deliberate design approach. The Create phase encompasses three dimensions: Customer Insight, Strategy, and Design Process. 1. CUSTOMER INSIGHT By gathering customer insights through research and data, you’re able to understand your customer’s needs and establish goals as a means of creating new and better experiences. It is critical to talk with your most valued customers to understand their expectations and how you measure up today. You need to know which touchpoints and channels are involved in their customer journey and how satisfied they are with those interactions. An effective CX plan addresses each of the tasks outlined below, and includes insight and data to clearly understand the current situation. // Customer personas that include a 'most important tasks' ranking // Customer journey maps that have been validated with data and customer research // Insight into the role, importance, and level of customer satisfaction with every touch point in their journey // Understanding of how mobile devices are used to interact with your company // Understanding of CX satisfaction today, with the ability to drill down into the five to eight key drivers // Understanding of customer loyalty strength, including intent to repurchase and advocacy // A system to collect customer feedback and use it to drive CX innovation and improvements To truly understand your customers, it is also important to gather information from your customer-facing employees. These employees are a means to understanding what barriers exist between your customers and the ideal experience. They have the day-to-day experience and insight into your company’s operational or technological barriers, and are often a great source of “quick wins.” CREATE 07 02 03 04 05 06 Culture Strategy Operations Design Process Enabling Technologies Measurement 01 Customer Insight
  • 15. 15 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS CUSTOMER INSIGHT BEST PRACTICE CREATE A DETAILED CUSTOMER JOURNEY MAP A good customer journey map illustrates every interaction a customer makes while completing a transaction. A best-in-class map incorporates data and customer input to identify pain points and the best ways to eliminate them. Despite the fact that mapping is a proven best practice, many companies are missing a huge opportunity to improve CX by completing this work. In a recent study, only 54% of survey respondents confirmed that they have completely mapped out or are in the process of mapping out the customer journey, within the last year.9 When Hunter Douglas set out to build a product visualization application for its customers, some of its competitors already had similar tools. But Hunter Douglas was committed to finding out what its customers were missing, and then delivering on those needs. We conducted in-depth consumer interviews, market analysis, and usability and prototype testing to guide our app development strategy. Our research showed that consumers – eager for proof they were making a smart and stylish investment – wanted to preview the window fashions up close, in detail, and in room settings. We brought this insight to life with the iMagine™ Design Center application. Since the launch, visitors are twice as likely to engage in purchase intent activities such as searching for a dealer when interacting with the app. / CUSTOMER INSIGHT CLIENT SUCCESS STORY HUNTER DOUGLAS BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS / 15
  • 16. 16 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS 2. STRATEGY Your CX strategy is a description of the experience that you intend to deliver and the associated value that you offer your customers. Your strategy provides direction and prioritization of activities in concert with enterprise goals and customer requirements. To be most effective, it must be driven by customer needs, be supported by the employees who deliver it every day, and deliver on your brand promise and value proposition. An effective CX strategy includes: // A clearly articulated vision with supporting strategies // Competitive insight that enables you to differentiate your CX // Organizational alignment to effectively support an omni- channel business // Success metrics that connect business performance with CX excellence // A road map to guide the implementation of approved projects // A capital budget that provides sufficient resources to execute the plan A thoughtful CX strategy establishes the vision for your company, but the benefits aren’t realized until the strategy is executed. With this in mind, the strategy must also include a road map to guide the executional effort, a capital budget to effectively fund the required investments, and key performance indicators (KPI) to evaluate the outcomes of the program. STRATEGY BEST PRACTICE CREATE A CX ROAD MAP AND DEFEND IT It takes a tremendous amount of work to develop an effective CX road map. Once in place, it is essential that all future projects demonstrate how they will advance the company’s CX effectiveness and are vetted and prioritized accordingly. It is equally important to remember that diluting funding and resources in an attempt "to do more" typically undermines your organization’s probability of success. 02 03 04 01 05 06 Culture Strategy Customer Insight Operations Design Process Enabling Technologies Measurement 07
  • 17. 17 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS 3. DESIGN PROCESS The design process is used to envision, plan, and create CX using a mix of science and art, technology, and operational problem solving. The most successful CX design initiatives are highly collaborative, with active involvement by the business, creative, and technology teams. These teams clarify project goals, develop a solid foundation of customer needs, apply design thinking principles such as rapid prototyping, and perform ongoing evaluation of customers through various phases of development. CX leaders follow these best practices for all digital design projects: // Project objectives are linked to a CX KPI and are justified with CX insight // UX and digital design standards are effectively documented to ensure consistency across all digital touchpoints // An iterative design methodology is used to create an end product that meets user expectations // The project plan is structured to support collaboration between UX, technology, and marketing // A UX leader is empowered to maintain CX integrity as inevitable executional compromises are made // A formal evaluation is conducted with customers to validate effectiveness prior to launch DESIGN BEST PRACTICE USE DESIGN THINKING TO CREATE DESIRED OUTCOMES Many teams are still getting comfortable with the principles of design thinking, but they are committed to the process. Use cross-functional teams and short cycles to improve each time you share a prototype and convert the feedback into a better solution. 07 02 03 04 01 05 06 Culture Strategy Customer Insight Operations Design Process Enabling Technologies Measurement
  • 18. 18 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS The best CX strategy will fall short unless the infrastructure, processes, and other components are defined and operational. In order to deliver an exceptional CX, you must have an effective combination of technology, operational processes, and measurement in place. The Deliver phase encompasses two dimensions: Enabling Technologies and Operations. 4. ENABLING TECHNOLOGIES Selecting the right technology solutions to enable your desired CX can be a daunting task. Finding solutions that enable your CX vision, working through integration issues, and justifying the expense are a few of the complex issues that must be addressed. Fortunately, there are well-established reference architectures and methodologies to guide organizations through technology adoption. A foundational element is the definition of business, functional, and technical capabilities that align with the most compelling CX. Modern systems are built for scale and ongoing refactoring in mind to be agile enough to meet changing expectations of your customers. DELIVER 07 02 03 04 01 05 06 Culture Strategy Customer Insight Operations Design Process Enabling Technologies Measurement
  • 19. 19 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS To keep pace with CX leaders, you’ll want to pursue a technology solution that enables you to: // Deliver an outstanding CX across all customer channels and device types // Efficiently manage content for multiple channels, including digital and physical, without extensive customization // Optimize your efforts through A/B testing, real-time monitoring and rapid content changes // Deliver highly relevant and personalized information, with behavior-based triggers // Create and leverage rich customer profiles by integrating multiple data sources into a single view // Meet all your customer’s expectations when using a mobile device to do business with you ENABLING TECHNOLOGIES BEST PRACTICE As a first step toward alignment of your CX strategy and the technology needed to enable it, you should discuss these five issues with your team: // How can we deliver a consistent experience across all channels? // How can we improve the effectiveness of our content management? // How can we boost the impact and ROI of our marketing campaigns? // What is the best way for us to provide a more personalized experience? // How can we consolidate all of our data so that we have a single view of the customer? THE COMPLETE GUIDE TO YOUR CX STRATEGY / 19 / OUR TECHNOLOGY PARTNERS We maintain strategic relationships with the world’s leading technology innovators, including: // IBM // Microsoft // Oracle // Adobe // Salesforce // And more To see all of our partnerships, visit Perficient.com/partners. BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS / 19
  • 20. 20 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS 5. OPERATIONS Many companies have invested heavily in a technology platform, only to implement the basic functionality and miss opportunities by not optimizing the analytics, having the platform rejected by business units that don’t want to change, or by not modifying policies that would enable employees to deliver a superior CX. CX leaders have recognized that an exceptional customer experience isn’t possible without operational improvements that create a more agile, responsive organization. They are rethinking roles and responsibilities, reorganizing to improve collaboration, and empowering employees with new decision rights. They are introducing an agile/lean methodology to make faster decisions and implement with fewer surprises, plus modifying their governance policies to deliver a consistent CX across divisions and products, with managed oversight of third parties. We see excellence across six operational indicators: // A CX champion is actively engaged and empowered to make decisions across functional groups // A clearly defined escalation system is in place to manage and resolve CX issues // The UX, marketing, and technology teams collaborate on a regular basis without a corporate mandate, and are able to reach compromises without management intervention // The core team is actively applying the principles of agile methodology // A change management plan is created for every major initiative // Team resources are thoughtfully assigned to important CX projects, with skill set and capacity as high priorities OPERATIONS BEST PRACTICE ENSURE YOUR OPERATIONS SUPPORT CX EXCELLENCE CX leaders understand that key functional teams have to work effectively together to succeed, but it’s naïve to believe that disagreements will magically disappear. It is imperative that operational policies and procedures be developed to proactively deal with the issues that are most frequently encountered on complex digital projects. 07 02 03 04 01 05 06 Culture Strategy Customer Insight Operations Design Process Enabling Technologies Measurement
  • 21. 21 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS A thoughtful plan serves as the foundation of CX improvement – and technology and operations play a critical role – but the soul of the CX experience is the culture of your organization. Your CX plan must address the ways that your team will maintain a high level of performance, knowing that customer expectations will continue to change, and your organization will have to adapt, and employees will be asked to accept new responsibilities. Customer focus is constantly reinforced through leadership and nourished through ongoing sensing, feedback, and measurement. An effective organization has a team of people who do their job well on a daily basis. An exceptional organization has a team that seeks opportunities to exceed customer expectations and knows that a little extra effort to take care of a customer is invaluable. The Sustain phase encompasses two dimensions: Measurement and Culture. SUSTAIN
  • 22. 22 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS 6. MEASUREMENT Developing an effective measurement system involves the metrics, technologies, and techniques used to track and report on your CX effectiveness. Ironically, there has never been more available data for companies that are seeking to improve their CX, yet many continue to struggle with actionable insight. Most companies have developed basic capabilities in this area. They have clearly defined CX metrics and KPIs that align with CX goals, and are able to accurately track the primary metrics across their digital properties. They have also incorporated the most important information into their standard management reports. A subset of this group is able to measure behavior and the effectiveness of digital touchpoints, and has assigned financial values to non-transactional actions and tasks. MEASUREMENT BEST PRACTICES CX leaders should follow these best practices to monitor and improve their effectiveness: // The analytics program has executive sponsorship, sufficient resources and properly trained personnel // Have the ability to measure behavior and effectiveness across all digital touchpoints // CX goals have been clearly defined with KPIs across the entire CX // Analytics data is readily available and actively communicated within the organization 07 02 03 04 01 05 06 Culture Strategy Customer Insight Operations Design Process Enabling Technologies Measurement 22 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS
  • 23. 23 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS 7. CULTURE Your company’s culture is the shared attitudes, beliefs, and values held by leadership and employees, which are demonstrated through their actions. To create a customer- centric culture it takes effort across the organization, from top to bottom. While leaders are responsible for the oversight of this CX focus, each employee needs to be enabled and encouraged to make customer-centric decisions in their daily work. CX leaders strongly agree with these culture-building principles: // Leadership actively supports CX efforts and results // Employees are empowered to create a memorable CX // Key functional groups share many of the same CX goals // Employees have sufficient skills and experience to execute the CX strategy // The organization is willing to take risks and understands that some projects will fail // Financial incentives and career advancement opportunities are properly aligned with CX KPIs // CX feedback and metrics are reviewed with employees on a regular basis CULTURE BEST PRACTICE EVALUATE YOUR ORGANIZATIONAL STRUCTURE CX leaders understand that their organization must continually adapt to thrive in an omni-channel world. We strongly recommend that your management team discuss these three issues: // What is our management process to balance our corporate CX goals with functional group goals? // Are we modifying our job roles to consider the CX tasks and technology skills that are necessary? // Do we need to change our organizational structure to break down silos and improve cross-functional collaboration? 07 02 03 04 01 05 06 Culture Strategy Customer Insight Operations Design Process Enabling Technologies Measurement
  • 24. 24 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS How is your company delivering on these seven dimensions? Where are you getting it right with your CX, and where do you need some work? Take our CX assessment to see where you stand today. WHAT’S MY CX SCORE? TAKE OUR CX ASSESSMENT Contact us to learn more about CX IQ and CX AMP, our jumpstart tools designed to help you gain better focus on your CX, create breakthrough visualization, and build consensus for further innovation. Sales@perficient.com GET STARTED NOW
  • 25. 25 / BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS MEET THE AUTHORS BRIAN FLANAGAN DIRECTOR, DIGITAL EXPERIENCE For more than 20 years Brian has worked with clients to design and execute cutting-edge user experiences. As a digital experience strategist, he is responsible for driving digital strategy for enterprise clients and oversight in delivering best practices. In this role, Brian keeps Perficient Digital and its clients on the cutting edge of new design strategies for next-generation technologies to consistently exceed client and peer expectations. JIM HERTZFELD PRINCIPAL, STRATEGY AND INNOVATION Jim leads digital strategy and innovation for Perficient Digital. He has nearly 25 years of experience in digital strategy, customer experience, and delivery, and he has provided client leadership to enterprise and strategic initiatives at companies like Target, Luxottica, and Honda. His areas of focus include commerce, digital marketing, and complex systems integration in retail and consumer markets. GREGG SAMPSON DIRECTOR, DIGITAL STRATEGY Gregg offers a unique blend of digital marketing, commerce, and traditional marketing expertise. He specializes in creating customer-driven digital strategies that are supported with research and analytics, and driving organizational alignment around customer experience improvement initiatives. Gregg brings more than 25 years of experience with Fortune 1000 companies in both B2C and B2B industries, with proven success across every phase of the customer life cycle. SOURCES: 1 Forrester, "Forrester’s CX Index Ranks the Brands that Deliver the Best Customer Experience" 2 Cloud Cherry, "The Rules of CX Are Changing" 3 Super Office, "32 Customer Experience Statistics You Need to Know for 2017" 4 Ad Week, "81% of Shoppers Conduct Online Research Before Buying" 5 Brafton, "94 Percent of B2B Buyers Research Online for Purchase Decisions" 6 CMO Council, "Can We Future-Proof Customer Engagement?" 7 New Voice Media, "The Multibillion Dollar Cost of Poor Customer Service" 8 Rare, "Defining Loyalty" 9 Marketing Week, "B2B Branding: Where Is the Love?" 10 Forrester, "Transforming Your Organization into a Customer Experience Powerhouse" 11 Econsultancy, "Quarterly Digital Intelligence Briefing: 2016 Digital Trends" 12 Walker Info, "Customers 2020" 13 Gartner Group, "Leading on the Edge of Chaos" 14 Retention Science, "Customer Retention Should Outweigh Customer Acquisition" 15 Watermark, "The Loyalty Lift" 16 Altimeter Group, "2016 State of Digital Transformation"
  • 26. BUILDING YOUR CX STRATEGY: SEVEN DIMENSIONS FOR SUCCESS / 26 ABOUT PERFICIENT DIGITAL We architect systems of customer delight. We move at the speed-of-culture. We exist to delight our clients, by relentlessly delighting their customers. We are what happens when more than 200 of the most talented digital strategists, design pros, brand shapers, digital marketers, data scientists and creative coders all believe one thing to be true — exceptional customer experiences always translate to positive ROI for our clients. Perficient Digital blends the strategic imagination of an agency with the deep technical acumen of Perficient’s established consultancy to deliver exceptional customer experiences for the world’s biggest brands. PerficientDigital.com @PRFTDigital Facebook.com/PerficientDigital Blogs.Perficient.com/PerficientDigital