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顧客體驗帶動下一波增長 實現數位轉型商業效益的4大當務之急

When it comes to customer experience, you probably intuitively think of the call center. In fact, customer experience has a long history dating back to the 1920s, formerly known as customer satisfaction surveys, developed to test and adjust advertising effectiveness. From the late World War II to the 1970s, the booming economy was stimulated, and market competition also increased. The concept of customer experience gradually emerged in the minds of practitioners. Satisfaction surveys blossomed everywhere and continued to be applied to products and personnel services. feedback.

Many customers often come to us for consultation on how to solve the pain points of sales from the data plane, or discuss the difficulties encountered in the transformation of enterprises. However, these issues should all come back to the core -- creating a better, more responsive customer experience that drives business growth. However, customers are essentially not very clear about the customer experience.

In the face of a futuristic marketing mix, the customer experience must be upgraded again with new meanings. My view is that the customer experience is a collection of contextual moments of marketing, sales, commerce and service, and data is the core asset that connects the brand to the customer. The interactive feeling left by each touch point becomes the overall impression of the customer on the brand. Currently, I see that customer experiences for client brands are mostly fragmented—meaning that the goals, talents, knowledge, strategies, and activities in the organization are all independent of each other, resulting in the experience becoming a multi-headed carriage, and the customer's emotions cannot be connected to the brand.

Successful customer experience needs to span data, technology, processes, applications, etc. It is the core business of an enterprise, and it also needs to strike a balance between rationality and emotion. Regardless of industry or form, I observe that brands are facing 4 imperatives that need to change

Customer experience is the collection of contextual moments of marketing, sales, commerce and service, and data is the core asset that connects brands to customers.

Priority 1:
Optimize the data collection process for customer value

Brands no longer have the dominant power to speak to the market! It is the customer who decides when, where and how to interact with the brand. This shift has blurred the boundaries between brands' historical perceptions of market needs, consumer perceptions and marketing plans. As a result, the boundaries of the marketing funnel are gradually blurring, and the process of cognition, consideration and purchase is no longer followed.

I see fluidity between the funnels and discerning customers expect more from brands than ever before. It’s not enough to just use data to identify and predict the next best time. It’s time to introduce new processes that promote customer relationships and persistence, and start thinking about data differently. Brands’ data strategies in the past have been to gather a lot of data about products and buying cycles, perhaps it’s time to take a step back and ask yourself “Why should I prioritize collecting this data?”

Therefore, it is even more important to reshape your "data strategy". The purpose of collecting data should be to be able to continuously update and optimize the value proposition of the enterprise as an input, and then become an output to effectively improve customer experience - Hyper Personalization ). This will be a method for corporate brands to adjust data collection for the purpose of optimizing the application value of customer data in the face of the data era (see Figure 1).


Figure 1 8 steps to enhance customer value and optimize data collection

Source: Dentsu Marketing Communications Group – Merkle


The role of data: yesterday, today and tomorrow 

The role of data continues to evolve as new experiences and privacy regulations evolve. More and more customers are focused on data privacy, and only trusted brands can make customers want to believe that their personal information can be valued; at the same time, they also want to have a personalized experience. So, to stay ahead, brands need to understand how current data is changing and not changing: What remains the same is that the primary role of data has not changed over time to help brands better understand your customers. The more relevant information a brand has about its customers, the better it is able to build and develop positive relationships. What has changed is that the types of data themselves are changing. In the past, we focused on transactional data, but now brands need to expand to pre- and post-transaction behavioral data. Although the amount of data has exploded, while having "more", "better" data quality is also becoming more and more important.

Turn customer engagement into customer value 

"Value" has completely different meanings to different people: one person may think that the speed of customer service is a kind of value, and another person may think that a product with a high CP value is a value. In the eyes of customers, value is when their motivations and goals are met. Therefore, you can strike a balance of value in 3 ways.

  1. Focus on customer engagement:
    meaningful customer engagement can create positive market reputation. When you value customer engagement, whether it's your product, your sales mix, or the way your customers communicate with you, you start to focus on customer needs instead of thinking.
  2. Align your organization with customer-mindset design:
    Build teams that think like your customers, so that teams in turn serve customer needs, such as those who value price over product, or those with immediate and long-term needs .
  3. Treat the customer experience as a product:
    For example, because your website is rich in product information, customer A comes to learn about the product. You will get data exchange from this future customer, e.g. get email, as well as information on why, when, where and buying propensity to buy. In this example, the "brand" doesn't get this information, but the "experience" does. If you build a team according to the concept of product development, you and your customers can complement each other and get what they need.


Treating the experience as a new product to be developed, data that is not related to product sales, will immediately demonstrate significant value . "


Priority 2:
Perfecting the measurement mechanism can reproduce the customer value in the data

road. In "Who Said Elephants Can't Dance," Louis V. Gerstner , Jr.  said, "People don't do what you expect, they do what you evaluate." That's why businesses measure success way is important? If a business gets stuck in traditional evaluation methods, or fails to share a common goal of the company vision, there is a good chance that departmental teams will work in different directions or actively glorify evaluation metrics. In doing so, brands will unknowingly allow themselves to fall into mediocrity.

Growth Strategy: Push Back Necessary Actions in the Future

Former PepsiCo CEO Indra Nooyi outlines how she plans for the beverage giant's future. She begins by defining the top ten trends shaping business over the next decade. She then deconstructs trends, defines possible future states, and projects them onto actions PepsiCo needs to take to ensure immediate and regular progress. The process starts with a vision of the future, then asks what prerequisites must be met to achieve this goal and rolls it out to every level of the company until everyone's output can be clearly defined in relation to the goal.

For example: if you want 80% of your customers to keep buying, you need to improve product quality and value, service quality and brand recognition. Or to improve service quality, you need to increase responsiveness (digitization and automation), provide a personalized experience by connecting all touchpoints, and improve inventory management (digitization, hub-and-spoke models, and advanced forecasting).

Data sources to show customer value

Therefore, after the organization was constructed with customer thinking in the previous stage and regarded as a part of product development, performance evaluation methods are still needed to tie the team performance to the overall goal, so as to achieve the goal of the organization as a whole with customer value as the enterprise value proposition. to drive the real business benefits of customer data. In order to obtain the correct data with an effective evaluation mechanism, you need the following 5 steps:

1. Set goals:
Start with a clear and realistic goal and
identify common goals for the entire organization.  

2. Establish linkages:
Establishing a clear set of linkages between overall organizational goals and corresponding strategies
will allow for specific assessments to consider prioritization of projects, especially those that have the greatest substantial impact on intermediate results and overall business goals. Project. 

3. Establish a measurement framework
Import a clear measurement framework for customer experience that covers all relevant departments that currently provide customer experience, such as marketing, sales, commerce, and customer service. 

4. The measurement method of the unified mechanism
is the same as doing business. It will continue to develop and there will be the possibility of elimination. Even when a strategy has been set for an organization's customer experience goals, KPIs and metrics often may not align with that goal. Therefore, a unified mechanism must be created to measure performance across units, aligning short-term strategic business objectives with long-term organizational development goals. It is then possible to compare performance across teams and understand the ability of teams to execute related projects. 

5. After a thorough push to
assess how your organization's capabilities are different from your industry competitors, you must stop and take a complete look at the existing metrics again. Afterwards, identify the areas where your business needs to expand and find the constraints of talent, process, technology and data. All KPIs are indicators, but not all indicators can be meaningful as KPIs, let alone apply the same measurement framework to different organizations. In order to become the key competitiveness of one's own organization in terms of customer experience, it is necessary to thoroughly implement short, medium and long-term plans, and regard the introduction of the customer experience evaluation mechanism as a necessary task for thorough promotion.


Priority 3:
The next generation of business experiences is about creating emotional experiences

The digital transformation of the past 20 years has made commerce easier . The exchange of value between brands and customers is also more secure from a data privacy perspective . The new crown epidemic has brought a new interpretation of experience and safety. Customer relationship is no longer about points and feedback. Competitiveness will now be based on building long-term brand affinity and positive interpersonal word of mouth.

Win customer lifetime value with customer experience

Businesses must ask themselves: customers have more choices and equally convenient, what determines where customers spend their money? What new factors influence buying behavior and long-term loyalty? "Brand" is the most obvious key point. However, building long-term and valuable customer relationships is much more difficult than a one-off interaction with short-term promotions. But when the Internet makes shopping more convenient and customers can find more homogeneous products, creating a perfect customer experience and continuous optimization can win the favor of customers for life-long transactions.

Brand relationships are relationships: dialogue, trust, fun and respect

Therefore, trust is the foundation of customer loyalty, but customers need to know that the brand really values ​​their opinions in order to have the possibility of trust. Therefore, the deepening of the dialogue mechanism between brands and customers is the starting point for continuous gain of trust. Furthermore, the relationship between a brand and a customer is like a personal relationship, requiring occasional freshness, inspiration, and even surprise. Through creativity, we can find something new and what customers prefer and care about, and then make the relationship closer.

Customer experience and friendship are like two sides of the same body. Friendships between like-minded people will last forever, and different groups will not be attracted to each other. We can incorporate the principles of maintaining friendship into business experience strategies. Such as having fun in each other's company, for brands, this is how to entertain and communicate with customers. Customers love a brand that listens to them, and the customer experience must provide a platform to talk to them. In most cases, the exchange of goods for money is not the only meaningful exchange of value. For example, Gen Xers and Baby Boomers prefer service experience over focus or product quality, and brands need reciprocity to win - win . Brands must be honest about their business practices and deliver on their promises, and earn trust with customers with mutual respect.


Listen to your friend's troubles and help him solve the problem

The next market will require more fairness, transparency, and authenticity, which will affect your customers' shopping choices. In addition to transaction results, the business of the next era needs to cover the mentality of customer service to solve problems for customers, not just predict the timing of customers' purchase. Every moment of interaction with customers is an experience of business and service. Brands should carefully design, present and evaluate the effect of each experience for customers one by one.


Imperative 4: Understand what marketing technology really means

The strategy of many old brands to enter the market is mainly wholesale. In order to face the competition in the new era, they all mistakenly think that the existing business model must be completely abandoned. In fact, these old brands can look at customers and their own business models from a 360-degree perspective, and use marketing technology to exert stronger unique advantages.

Past experience is not necessarily a formula for future success, but it still has value

Old brands can use the scale and quality control experience of the original business model, supplemented by the regional operation experience of the distribution system, to implement various new ideas and find product innovations that meet the larger market. The innovative kinetic energy has become a collection channel for customer experience-related information through the extension of new business models (such as the DTC model) under the blessing of marketing technology. Further form a unique competitiveness that responds to changing customer needs with data agility and continues to promote innovation.

In addition, platforms such as dynamic creative optimization apply data from customers' behavior, location, preferences and timing to deliver immediate and effective content and experiences. This approach connects all digital media, including display advertising, video, connected TV, outdoor advertising, and the community, seamlessly connecting current messages with relevance. The customer insights that stack up from the above data are then applied to emails, SMS and website content to achieve the great customer experience the brand wants to deliver .

Grasp the true value of marketing technology

However, investing in technology does not mean that the brand immediately has the ability to automate marketing or customer experience. The scene is often the key element that the brand lacks the most.

The decision maker of platform or technology introduction is usually the information technology department, not the marketing or business department with the highest demand, and there are often insufficient cross-department integration, unclear demand communication, and inapplicability to actual application scenarios, usually the failure of marketing technology main reason. Technology is what makes the experience happen, but it doesn't necessarily directly solve business problems. The top priority for brands is to re-understand the true value of marketing technology.


New thinking of customer experience that drives compound leap forward

By clarifying the purpose of data collection, measurement framework, utility form, and application scenarios, brands can achieve their ultimate goal of providing a superior customer experience that drives long-term relationships. This cannot be achieved by giving an inspiring speech. It requires active support and participation from the entire organization. You need to define the types of experiences that customers want and that you can deliver; then, in an ever-changing world, plan backwards to make experiences a reality and drive positive business outcomes. This requires a culture of agility, ingrained in the mindset of every employee. While past experience may influence employees, the only way to grow in this new era of experience is to test new ways to attract customers, and to keep an eye on the optimization possibilities of the current business mix and be willing to try and make adjustments. 

The use of data to drive customer experience remains, but heightened concerns about privacy are driving demands for transparency and data protection. Brands must earn the trust of consumers now to grow with them into the future. The ideal customer experience needs to span business, data, technology, and marketing—experience transformation under this compound thinking can help brands re-understand their future marketing mix, accelerate the brand’s new evolutionary direction, and make a compound leap together.