Why CX Leaders Take a Journey-Based Approach to Deliver the Next Best Experience

Why CX Leaders Take a Journey-Based
Approach to Deliver the Next Best Experience
Brandon Purcell
Principal Analyst
Forrester

2© 2019 FORRESTER. REPRODUCTION PROHIBITED.
About the speaker:
Brandon Purcell
Principal Analyst
Brandon helps organizations derive meaningful insights from
customer data to attract and retain customers, increase
customer loyalty and profitability, and inform product
development and service delivery. His research agenda includes
customer analytics and artificial intelligence strategy, innovation
and best practices, skill development, and vendor evaluation.
Prior to joining Forrester, Brandon led the data science team at
a boutique consulting firm, where he employed advanced
customer analytics techniques to address his clients’ business
challenges. Brandon holds an MBA from the Haas School of
Business at U.C. Berkeley and a B.A. in English and creative
writing from Dartmouth College.

Today you will learn…
› How to contextualize your customers’ behavior to deliver optimal,
personalized experiences
› Why it’s essential to align your CX metrics with long-term business KPIs
› Why even the most sophisticated customer analytics programs fall short
without a journey-based approach
› How to leverage the output of existing customer analytics techniques

In the age of the customer, we gather
massive amounts of data
• Behavioral data
• Social data
• Mobile data
• Environmental data
• Sensor data
• Transaction data
• Customer data
• Third-party data
• Financial data
• Sales data
• Product data

Customer insights are the
gold buried within your data

Key phases of the insights lifecycle
Insights
Action
Data

“We are drowning in data and
starving for insight.”
— Global Bank

Customer analytics turns data into insights
Customer analytics uses customer data
and analytic insight to design customer-
focused programs that win, serve and
retain customers.

Now let’s explore the menu

Traditional customer analytics techniques have been
available for quite some time
Source: February 2014 “TechRadar™: Customer Analytics Methods, Q1 2014”

Methods that improve the customer experience…
Customer experience
analytics methods:
• Customer satisfaction
analysis
• Customer engagement
analysis
• Customer journey
analysis

© 2015 Forrester Research, Inc. Reproduction Prohibited 15
Case study: Misapplied payments at a retail bank
› A large retail bank was receiving negative customer feedback about misapplied
payments:
I thought I paid my mortgage on August 31st, but my payment went toward my
credit card. When I realized this a few days later, I contacted you and you said
you would reverse the payment. It is now TWO WEEKS later and I am receiving
COLLECTIONS CALLS about my mortgage! The payment is gone from my credit
card account, but it hasn’t been made to my mortgage. Where is my money????
Note: this is a fictitious comment based on a real example

The bank thought it understood the path for
misapplied payments

The bank thought it understood the path for
misapplied payments
1 to 2 days

Then it looked at an individual customer’s
journey…
Aug. 31 Sep. 7 Sep. 8 Sep. 10 Sep. 24

And found some serious issues
Sep. 1:
Payment due
Sep. 8:
Collections
calls begin
Sep. 14: Customer
charged $25 late fee
Aug. 31 Sep. 7 Sep. 8 Sep. 10 Sep. 24
17 days!

Using journey analytics, the bank launched a
broader investigation into misapplied payments
Key metrics:
• ~2,400 customers per month, mostly mortgage to credit card
• 10% received collections call
• 27% received late fees
• Higher attrition rate for checking accounts
Average Duration: 7 days!

So… what did they do about it?
› Launched a project to decrease the payment reversal time
to 1 day
› Modified the online payment process to make it less error-
prone
› Adding self-service payment reversal functionality to the
website

These techniques rarely exist in isolation

It’s time for a
new “Next Best”
paradigm…
The Next Best
Experience
(Friends call it NBX
for short)

The Next Best Experience focuses on customer
lifetime value optimization within a journey context

How can I get started with NBX?

26© 2019 Forrester Research, Inc. Reproduction Prohibited
Customer
service issue NPS
+ 5 points
Call volume
+ 25%Truck roll
Reminder 1.1M
No
reminder 160K
Use customer journey analytics to
understand CX impacts

Make customer lifetime value your organization’s
North Star metric

. . . then bring in reinforcements
Learning

Think first, then act!
Business
objective
• What are
your key
business
objectives?
Data
• Which data
sources do
you need?
AI / analytics
• Find the
high-impact
opportunities
and threats
ACTION
• Optimize the
customer
experience

FORRESTER.COM
Thank you
© 2019 FORRESTER. REPRODUCTION PROHIBITED.
Brandon Purcell
+1 510.926.2694
bpurcell@forrester.com
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Why CX Leaders Take a Journey-Based Approach to Deliver the Next Best Experience

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