Guest Post: How Cloud-Based Predictive Analytics Gives Companies a Competitive Marketing Advantage

Monitoring and fine-tuning analytics are becoming essential to stay competitive in today’s marketplace. Case in point: Business intelligence analytics software sales will reach $18.3 billion in 2017, a 7.3 percent increase from last year, Gartner projects.

By 2020, the market will be worth $22.8 billion and analytics will be mainstream, Gartner forecasts. This means your competitors will be using analytics. Here’s how getting on board with cloud-based predictive analytics now can help you gain a lead on the competition and increase your bottom line.

Optimize Your Marketing

A great advantage of analytics software is that it gives you the ability to objectively measure the effectiveness of your marketing by tracking key performance indicators, explains Silvon Software director Pat Hennel. Some KPIs you can easily track include:

  • Sales revenue
  • Cost per lead acquisition
  • Customer lifetime value
  • Online marketing ROI

Tracking KPIs enables you to see which of your marketing campaigns are generating the best return on investment so that you can reallocate resources to those efforts rather than non-performing ones.

Similarly, you can identify which marketing channels are yielding the best results so you can focus on those media. You can also see which demographics represent your best customers to emphasize those target markets and gear your sales themes toward benefits that will appeal to them.

Refocus Your Sales Efforts

Another benefit of cloud-based analytics tools is the ability to combine them with customer relationship software to better leverage your sales efforts. By analyzing your organization’s lead database, you can better identify which prospects are qualified leads in order to deploy your sales reps accordingly. From there, you can identify which prospects are furthest along in the sales cycle and more likely to convert into a sale.

You can also analyze customer sales history to identify which customers represent your biggest revenue sources and best repeat buyers. You can then prioritize these customers and develop sales strategies specifically geared toward them.

Personalize Your Sales Presentations

Combining cloud-based predictive analytics with CRM tools can also help you personalize your sales presentations to make them more persuasive to individual customers. In fact, you can review a customer’s history of past purchases to see what types of products and services they prefer.

For example, Amazon displays offers based on what the customer has previously browsed or purchased and what types of products have been purchased by other people who browsed or purchased the same items.

You can also study individual purchase patterns to identify their shopping style and what types of factors influenced their previous buying decisions. For instance, one customer might be more likely to respond to a certain type of added-value benefit, while another might be more likely to respond to a lower price. You can then supply this information to your sales representatives so they have a better idea how to appeal to that particular customer.

Increase Customer Satisfaction with Superior Service

Cloud-based analytics can also enhance your sales and marketing efforts by allowing you to track the performance of your customer service teams, which is key in achieving repeat business and referrals. Cloud-based contact center platforms, including Aspect Zipwire, let you track your customer service performance across multiple channels (e.g., phone, email, online chat and more), giving you a comprehensive perspective so you can make any necessary adjustments and improvements.

To track your customer service performance, you can then set up KPIs. Customer performance KPIs you can track include overall satisfaction, the number of resolved issues, average resolution time and complaint escalation rate.

 

About the Author

Roy Rasmussen, coauthor of Publishing for Publicity, is a freelance writer who helps select clients write quality content to reach business and technology audiences. His clients have included Fortune 500 companies and bestselling authors. His most recent projects include books on cloud computing, small business management, sales, business coaching, social media marketing, and career planning.

 

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Digital Transformation Projects Have an 84% Chance of Failure; Are You Ready to Failure or Succeed?

Would You Invest If You Knew the Investment Had a High Likelihood of Failure?

If I were to tell you that I had an investment opportunity for you and the probability of you making money was 16% or less, how likely would you be to invest in it? But if I told you that the investment opportunity had a 90% chance of returning your investment, might you be more likely to want to invest?

What’s interesting is that digital transformation is all around us. We can’t help but be impacted in our person lives, from smart phones, smart TVs, apps (think taxi’s vs. Lyft), Siri, Alexa and Google Home. In business, it’s clear that customers want to engage with business in digital and mobile channels. Businesses need to make the transition to be competitive and survive. Yet according to Consultancy.uk* and Bruce Rogers** who wrote Profitable Brilliance: How Professional Service Firms Become Thought Leaders, 84% of businesses undergoing digital transformation are likely to fail. 

The More Things Change, The More They Stay The Same

Having been at this game for a while, the statistics reminded me of stats from nearly 20 years ago when the topic was CRM and ERP. Though they are not exactly the same, they have many of the same elements. Digital transformation, innovation and CRM and ERP implementations are IT implementation of people, process and technology. What they have in common is the use of technology to make scalable processes that were once manual. The advantages among many, were higher productivity (cost savings) but also providing better customer-facing experiences (revenue generating.) Going back through my old papers about CRM and ERP failure rates,*** I saw many of the same type of stats predicting similar failure rates for digital transformation projects are being predicted today**** (and by many prominent groups, including IDC, Gartner Group and Forrester Research.)

Things that make you go hmmmm. The more things change, the more they stay the same.

When Will Organizational Change Management and Culture Change Be Taken Seriously?

The stats show since the late 1990’s – early 2000’s until now, when Culture Change (CC), Organizational Change Management (OCM) and Behavioral Change (BC) is missing from a project, there are issues, yet it’s still not “fashionable.” Perhaps the lack of fashionability is from an old paradigm stemming from the command and control type leadership that doesn’t deem people as an important aspect of the business transformation, whether its CRM, ERP or Digital Transformation. Perhaps it stems from leadership that doesn’t know there’s a whole science and set of CC and OCM methodologies that go along with IT implementations. Perhaps they have never been shown the value of that OCM and CC can bring, so they still don’t think it’s important enough to invest in. Perhaps it’s a matter of showing people that it works and makes a difference!

The Time for Change is Now

The 4th industrial revolution challenges most of our existing mental models. What this means is that cultural change is essential to enable and execute successfully, any business / organizational / digital transformation. The key is having a plan, as well as, having developed tools and process for culture change and organizational change management which includes, but is not limited to having a:

  1. Communication plan and regular communication cadence
  2. Leadership and stakeholder involvement and engagement
  3. Training and skill development for the future state of the business and
  4. Organizational readiness and adoption on a continuing basis of the ongoing changes.

And of course, underneath each of these very simplistic groupings is a deep set of assumptions, tools, methodology and business-driven outcomes. So digital transformation isn’t uniquely about technology. It is about having the right digital strategy to ultimately transform a business to achieve higher objectives. This type of digital transformation must be built along with the human capital component, including skill sets, as well as, a cultural adoption of changing the way we do business. So what it boils down to is evolving behaviors within the organization, both from a leadership point of view as well as middle level managers to all employees.

Being Stuck in the OCM Adoption Chasm Will Cause Digital Transformation Failure

What is seems like, referencing one of my favorite people and author’s is Geoffrey Moore. It’s seems that perhaps we are, after twenty or more years of having OCM and CC at our finger tips, we are stuck in the adoption chasm. What we are headed for is the digital transformation iceberg of failure. We know what the iceberg did to the Titanic. We don’t want to be on a sinking ship. So what does an organization need to do? More on all of this in a future post.

@drnatalie

Natalie Petouhoff

VP, Program Executive, ITC | Salesforce.com

References

* Consultancy.uk. “Two Thirds of Digital Transformation Projects Fail” Consultancy.UK. N.p., 28 Sept. 2015. Web. 28 July 2016

**Rogers, Bruce. “Why 84% Of Companies Fail At Digital Transformation.” Forbes. Forbes Magazine, 7 Jan. 2016. Web

*** http://sloanreview.mit.edu/article/the-end-of-corporate-culture-as-we-know-it/

*** http://www.cio.com/article/2440386/supply-chain-management/supply-chain—hershey-s-bittersweet-lesson.html

*** http://customerthink.com/failed_crm_implementation_finally_costs_hp_465_million_in_damages/

*** http://www.destinationcrm.com/Articles/Columns-Departments/The-Tipping-Point/The-Scientific-Reason-for-CRM-Failure-Part-1-42510.aspx

*** http://www.destinationcrm.com/Articles/Columns-Departments/The-Tipping-Point/The-Scientific-Reason-for-CRM-Failure-Part-2-42655.asp

*** http://media.techtarget.com/searchCRM/downloads/CRMUnpluggedch2.pdf

*** http://www.zdnet.com/article/crm-failure-rates-2001-2009/

*** https://hbr.org/2002/02/avoid-the-four-perils-of-crm

*** http://www.infoworld.com/article/2648303/applications/waste-management-sues-sap-over-erp-implementation.html

*** http://www.computerworld.com/article/2517917/enterprise-applications/sap–waste-management-settle-lawsuit.html

*** https://www.google.com/#q=hershey+crm+failure&*

*** http://www.crmsearch.com/crm-failures.php

*** http://www.destinationcrm.com/Articles/Columns-Departments/Insight/A-Succession-of-Failures-70822.aspx

**** https://www.idc.com/getdoc.jsp?containerId=US40550115 ; http://www.gartner.com/newsroom/id/3337617 ; https://www.cmo.com.au/article/545992/will_your_business_digital_predator_prey_/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Oracle Service Cloud Announces New Releases

Oracle Service Cloud announces new releases for enhanced functionality in Web Customer Service, Contact Center including the Agent Browser User Interface, Knowledge Advanced, Policy Automation, and the Oracle Service Cloud Platform. Included in he release is a new Internet of Things (IoT) Accelerator, which provides a bi-directional integration with Oracle IoT Cloud.

The integration helps customers seamlessly interface with IoT technology so that service events and alerts received from smart devices can be consumed, as well as appropriate action taken by agents, within the Oracle Service Cloud desktop. Field Service seems to be an area where IoT can easily provide true use cases that can quickly garner ROI. It will be interesting to see how vendors incorporate IoT in the customer experience. The Internet of Things (IoT) accelerator will allow internet enabled devices connectivity to Oracle Service Cloud. Accelerators are a collection of sample code, sample workflows, and best practices, documentation, and design guidance to assist customers with seamless updates or integrations with Oracle Service Cloud.Oracle Service Cloud Releases

Oracle Service Cloud also provided a sneak preview of Live Chat. What is the capability really about? Sneak preview allows chat agents to see what a customer is typing before they hit submit. Sneak Preview is designed to enhance agent productivity and bring value to the contact center by decreasing handle times. By allowing the agent to see what the customer is typing ahead of time they can begin to formulate an answer faster, which results in faster responses, and faster conversations. And Live Chat is now a fully supported channel; contacts are automatically matched and the contact and chat workspaces are integrated.

In addition, the release includes analytics performance enhancements with caching for frequent reporting and better notifications for report authors. Modern gauges are added to create much more intuitive and modern reports, allowing users to interpret data quicker, as well as new rendering options, to remove unnecessary components in reports, crisper rendering of charts, and a new modern layout theme. In addition, there is a new dashboard concept—specifically designed for that 5-second-glance overview for busy customer service leaders.

These at-a-glance infolets are available out-of-the-box and contain a number of single metric charts with real-time key performance indicators like open incidents by severity, SLA, First Contact Resolution, new incidents by channel, and so forth. Contact Center Directors can also schedule and send the infolet dashboard by email to key stakeholders at regular intervals. This is key as the more senior stakeholders are more involved, the more they begin to realize the importance of customer experience and customer service to the overall health, stability and revenue generation capabilities of their company.

In addition, the the agent browser UI has gone through a significant performance enhancement to support high interactivity and now supports a much broader range of analytics capabilities. The agent browser user interface is now a single version, meaning it is compatible with versions of Oracle Service Cloud all the way back to May 2015 and upgrades will now happen with zero downtime.  The UI theme has been updated for consistency across all Oracle Cloud portfolio applications. Knowledge authors can now use the Agent Browser User Interface to author and edit knowledge articles with a new HTML editor with HTML5 support.

As the race to provide the best customer experience continues, brands must choose between more single point solutions vs large system platforms. It will be interesting to see the choices of brands and how the customer experience evolves to meet the brand promise.

@DrNatalie Petouhoff, VP and Principal Analyst, Covering Customer-Facing Applications that Drive Awesome Customer Experiences

www.constellationr.com

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Constellation ShortList™ for Field Service Management

Constellation has announced the Constellation ShortList vendors in Field Service Management which provides the best capabilities to help employees serve customers. Field customer service occurs when resources or services are deployed onsite at a client. Field service management software enables companies to be flexible and nimble when providing service. These offerings are great at detecting problems before having to send someone to repair or fix a customer’s issue. In the event they must send someone, they can communicate in real-time with customers, provide on-site information about products and repair issues while offering relevant and timely service.

These offerings help companies improve their operational efficiencies by optimizing work-order routing and technician scheduling, which results in quicker resolution of issues. Analytics used in field services often optimize when services are deployed and how assets are tied to deployment of resources. They have advanced scheduling systems that let the customer know when the technician or field-service employee will arrive within a reasonable window of time. Helping provide an excellent customer experience is the most important aspect of field service management solutions.

The Constellation ShortList presents vendors in different categories of the market relevant to early adopters. In addition, products included in this document meet the threshold criteria for this category as determined by Constellation Research.  This Constellation ShortList of vendors for a market category is compiled through conversations with early adopter clients, independent analysis, and briefings with vendors and partners.

Constellation considers the following criteria for these solutions:

  • Good diagnostics prior to rolling out the truck
  • Resource management
  • Case management
  • Communication with the customer on the status of the technician’s arrival
  • Scheduling
  • Resource allocation
  • Inventory optimization
  • Mobile enablement.

Constellation evaluates over 25 solutions categorized in this market. This Constellation ShortList is determined by client inquiries, partner conversations, vendor selection projects, market share and internal research. These are the best-of-breed vendors that provide applications and services without bundling into another platform:

  • IFS
  • Oracle Field Service Cloud (formerly TOA Technologies)
  •  ServiceMax
  • ClickSoftware
  • PTC
  • SAP
  • Vertical Solutions.

For more information on the short lists, please see the Constellation Research site.

@Drnatalie Petouhoff, VP and Principal Analyst, Constellation Research, Covering Customer-Facing Applications

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Constellation ShortList™ Customer Service and Contact Center Software

Constellation Research is launching a new program, and I’m happy to share that the vendors that have been listed on the Constellation ShortList™ for Customer Service and Contact Center Software. The program offers buyers of technology a list of offerings to consider in their pursuit of digital transformation to provide the best capabilities to drive leading customer service.

The Constellation ShortList presents vendors in different categories of the market relevant to early adopters. In addition, products included in this document meet the threshold criteria for this category as determined by Constellation Research. This Constellation ShortList of vendors for a market category is compiled through conversations with early adopter clients, independent analysis, and briefings with vendors and partners.

Customer service and contact center software helps solve customer challenges faster by offering the right tools and support, regardless of channel or device (e.g., phone, tablet, email, chat, text, website, Facebook, other social networks). These offerings can effectively manage inbound communication for increased first-contact resolution, in addition to providing co-browse capabilities to allow visual communication for quicker query resolution. Additionally, they can support the reduction of cart abandonment and increase customer satisfaction with in-cart assistance. This type of software provides personalized care through the use of analytics, offering insight into customers’ behaviors for relevant, contextualized service that can predict future needs. Companies can identify new opportunities by integrating these customer insights into their companies’ innovation processes.

The software also creates seamless, online experiences with a knowledge base that learns from every interaction, enabling them to match content to consumer intent, which results in higher conversion rates. The top solutions also provide smart customer self-service, allowing customers to help themselves by fostering peer-to-peer support communities and eliminating the need to reach out to the contact center.

Constellation considers the following key criteria for these solutions: Self-service capabilities, case management, natural language processing for knowledge management and search, omni-channel and device customer journeys, mobile customer service and self service, queuing and routing, workforce optimization, predictive and prescriptive rules and advice, next-best action, natural scripting, customer feedback collection capabilities, IVR, visual IVR, inventory optimization, mobile enablement, social and digital engagement simplified user design (UX/UI), reporting and customer analytics, integration to IoT (Internet of Things) platforms and devices, data dashboard and data visualization.

Each Constellation ShortList evaluation will be updated every 90 days as needed. Constellation clients may work with the analyst and research team to conduct a more thorough discussion of this ShortList. Constellation can also provide guidance in vendor selection and contract negotiation.

The ShortList is determined by client inquiries, partner conversations, customer references, vendor selection projects, market share and internal research. The Shortlist includes:

  • Aspect
  • Avaya
  • Cisco
  • Genesys
  • inContact
  • Interactive Intelligence
  • Oracle
  • Salesforce
  • Verint.

For more information about the ShortList, please visit the Constellation Research site.

@DrNatalie Petouhoff, VP and Principal Analyst, Constellation Research, Covering Customer Facing Applications.

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#OOW16 – #IOT Is Really Asking Your Business What Outcomes Are You Looking For?

Many companies approach the internet of things by starting with a device, make it connectable and then are in search of a business use case. This is a typical process that happens when there is a new area of technology area. If a company uses that as a strategy, it can be the long road to #IoT innovation. What businesses need to ask themselves are, “What business outcomes are they looking for and what innovations could be possible to shift their business model?”

We heard from the @OracleIOT group several business scenarios:

  • Break / Fix it – which drives a predictive prescriptive business process
  • Static Analytics – which drives the use of real-time, big-data analytics
  • Ownership – which drives as-a-service business models and
  • Central Service– which drives self-service as well as self-guided service.

new-business-modesl-for-iot

What they are finding is that there are various phases a business often goes through when deploying IOT. It can start with the devices or assets (trucks, phones, factories, etc…) which are then connected to a platform which are connected to a network. For a business to actually make use of IOT, the first phase, Phase 1 can be about Connecting Assets for situations like remote monitoring and asset tracking. Phase 2 is can be using Predictive Analytics which means designing predictive algorithms to transform decisions into proactive instead of reactive decisions and improving products and processes. Phase 3 can be about Service Excellence. This is where the customer or employee experience is affected. It is where IOT is being used to transform business processes by blending IOT into enterprise applications like ERP, SCM, Customer Support, CRM, HCM…

phases-of-development-of-business-maturity-use-of-iot

Some of Oracle’s IOT applications are in the areas of:

  • Asset monitoring for the utilization, availability and data from connected sensors
  • Production monitoring and prognostics of the equipment on the manufacturing factory floor
  • Fleet Management for business who have fleets of trucks, buses, delivery and maintenance vehicles
  • Connected worker for the tracking of employees, for instance in the mining, engineering construction industries.oracle-iot-application-to-business

Here are some examples of clients applying IOT to their businesses:

oracle-example-clients-using-iot

VINCI is building the next generation sensor-driven building automation to reduce the number of “truck rolls” which has a huge ROI. They are doing this with the integration or Oracle Service Cloud and SAP. Lochbridge is creating connected fleets where IOT and big data is being used for predictive maintenance in monitoring fleet / cargo to reduce the response time. GEMU is using real-time filtering and processing of valve events and proactive parts replacement with the integration of CRM, IOT and a service ticketing system. And SoftBank is using IOT to deliver mobility-as-a-service where they are monitoring vehicle location for billing and geo-fencing.

As the world of IOT expands and more and more companies start to see the value in connecting enterprise applications, with devices, and networks, we will see the transformation of workers, employees and customer experiences. When those experiences are transformed, the real value and ROI of the connected enterprise will come to life.

@DrNatalie Petouhoff, VP and Principal Analyst

Constellation Research, Covering Customer Facing Applications and IOT

 

 

 

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Where I am Speaking This Fall! Come Say Hello!

It’s a busy fall and I hope to see you all out there, whether in person or on a webinar. Here’s some of the places I will be:

1. Webinar: ROI of Social Customer Care Sept 6th @clarabridge http://bit.ly/2bvWzgJ #custserv #CX

(Here’s the report: http://www.drnatalienews.com/blog/roi-of-social-customer-service-how-to-calculate-it-and-create-a-strong-business-case )

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2. Think ROI of Social #custserv can’t be calculated? Think again! Webinar Sept 13th @clarabridge http://bit.ly/2bSN0vj

(Here’s the report: http://www.drnatalienews.com/blog/roi-of-social-customer-service-how-to-calculate-it-and-create-a-strong-business-case )

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3. Digital Transformation: the Digital Blindspot – don’t let it happen to your co #ITRATL Sept 14th @constellationr (Here’s the report: https://www.constellationr.com/research/digital-disruption-blind-spot-could-sink-your-iot-initiatives )

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4. Modern survival guide: Speaking on #custserv for Millennials #OOW16 Tues 11AM Sept 20th @constellationr

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5. Webinar: How #DPM is the new #CX Sept 28th @dynatrace http://bit.ly/2bDQq2X @constellationr

(If you’re not actively managing digital #CX you’re not doing it right. check out the report on how to make #CX the best in the biz http://buff.ly/2b2yjpW )

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6. Digital Performance Management #DPM #DXS16 November 14 – make your #customerexperience #CX really powerful http://bit.ly/2bCLNrE

(If you’re not actively managing digital #CX you’re not doing it right. check out the report on how to make #CX the best in the biz http://buff.ly/2b2yjpW )

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Dr. Natalie Petouhoff, VP and Principal Analyst

Covering Customer Experience and Customer Service, Digital Performance Management and Digital Transformation

 

 

 
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Genesys Acquires Interactive Intelligence- Good Move for Both Companies

Genesys (www.genesys.com), a customer experience, omnichannel and contact center solution and Interactive Intelligence Group Inc. (www.inin.com), a customer engagement and global leader of cloud and on-premise solutions for  communications and collaboration, are entering into a definitive agreement. In this agreement  Genesys will acquire Interactive Intelligence in a transaction valued at approximately $1.4 billion.

How Will This Affect You and Your Customers?

The transaction will accelerate Genesys’ mission of powering customer experiences at scale, anytime, anywhere – over any channel and device, in the cloud and on-premise. Both Genesys and Interactive Intelligence have developed best-in-class capabilities with highly complementary product portfolios that serve adjacent market segments. So together, the combined company will provide a broad customer experience solutions globally for organizations of all sizes across a range of industries.

If you are wondering about their commitment to accelerate innovation and R&D,  Genesys has explained they are committed to accelerate innovation in the customer experience market, with more than $1.3 billion in revenue and annual R&D spend approaching $200 million.
Notes From The Executives

Paul Segre, Chief Executive Officer, Genesys offered, “This is a milestone transaction that combines industry-leading expertise and capabilities to enable lasting customer relationships, accelerate innovation and drive growth. Our combined product portfolio will provide the broadest set of transformative customer experience solutions optimized for customers of all sizes and sophistication levels, available both in the cloud and on-premise. We will significantly invest across the entire Interactive Intelligence product portfolio to support the continued momentum of PureCloud®, Cloud Communications-as-a-Service℠ (CaaS) and Customer Interaction Center™ (CIC), in addition to the rich portfolio of products offered by Genesys today. We are excited to work with the Interactive Intelligence team to deliver even greater innovation and value to our global customers and partners.
Dr. Don Brown, Chairman, President and Chief Executive Officer, Interactive Intelligence explained their position by saying, “We have been working for the past 22 years to build an outstanding company with innovative, disruptive technology solutions that transform businesses. I am confident that our agreement with Genesys, which follows a careful evaluation of strategic alternatives, provides Interactive Intelligence shareholders with immediate and significant value, and will deliver meaningful benefits to our customers, partners and employees. The combination of Genesys and Interactive Intelligence provides a complete portfolio to address all market segments by combining Interactive Intelligence’s PureCloud, Cloud Communications-as-a-Service (CaaS), and Customer Interaction Center (CIC) with Genesys’ offerings. I am excited for the combined company to continue to grow and meet the needs of organizations around the world.

What Does This Mean to You

Customer experience here to stay. It is the one competitive differentiator that a brand can’t ignore. Customers either have a great experience, over many touch points over the time they spend with a brand or they don’t. If they don’t, often don’t return. The question is what solution(s) will your brand use to affect their experience of doing business with your brand? Many choices for sure.

@drnatalie petouhoff,
VP and Principal Analyst, Constellation Research

Covering Customer Experience

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The Need for Customer Experience is Based on Science Not Myth

The need for customer experience to improve is not a myth. In fact, here’s why. Noted psychology researcher and writer Mihaly Csíkszentmihályi observed in 1998 that people who perform seamless, sequence-based activities on a regular basis are happier than people who don’t[i]. He coined the term “flow” to describe this behavior. With the advent of CoIT, we’ve actually imposed a new set of demands on our customer’s brains. But instead of offering a series of smoothly sequential flows, websites and mobile applications are characterized by lag, downtime, and restarts. And at the same time customer’s flow-oriented brains simply aren’t wired to deal with poor digital experience interactions. Science has shown the business need for great customer experiences is a fact, not a myth.

And it can be tempting to label customers picky and impatient. But there’s a wealth of research on what happens to customers at a neurological level when they are forced to deal with slow or interrupted processes.[i] Their impatience is an indelible part of their human circuitry. Brands must recognize that customers’ hardwiring of the brain’s and their neurological desire for flow and easy of use as part of the cost of doing business. Companies must come to terms with the economic imperative of the customer experience or drive customers to their competitors because of their poor focus on customer experiences.

Fast websites and mobile experience create happier users. Those happier users are more likely to follow “calls to action” to register, download, subscribe, request information, or purchase. Unhappy users, which could include those who experience a mere two-second slowdown in how a web page loads, make almost two percent fewer queries, three point seven-five percent click less often, and report being significantly less satisfied with their overall experience[i]. Worse, they tell their friends about their negative experience. With the word-of-mouth social networks provide, brands need to heed the seriousness of differentiating their brand’s customer experience or be left in the dust.

Response Times have been consistent for 45 years. Based on neuroscience, the facts about human perception and response times have been consistent for more than forty-five years[i]. In fact, these numbers are hard-wired in human brains. And they are consistent regardless of the type of device, application, or connection a customer is using. In fact, that’s key to where customer expectations come from thus important to capitalize on. And what’s critical is determining where a brand’ web / mobile sites compare to customer expectations as well as benchmarking against CoIT applications or competitors or even non-competitors who have a great customer experience.

Response Time Has Not changed Much. In Robert B. Miller’s 1968 paper, “Response Time in Man-Computer Conversational Transactions[ii]“, found people have always been most comfortable, most efficient and most productive with response times of less than two seconds. Since 2006, what has changed slightly is the average online shopper expects pages to load in four seconds or less. Today, forty-nine percent expect page load times of two seconds or less, and eighteen percent expect pages to load instantly[iii]. And while optimizing every aspect of a brand’s digital assets to meet an “instant” expectation is a laudable goal, organizations simply may not have initially budgeted the resources to achieve these goals. Digital experience maturity, however, provides teams the ability to identify the interaction points in the digital customer journey most sensitive to improvement so they can maximize return on performance investment and include this in the budget and resource planning activities. Here’s the results of the Walmart study on page load times and conversion rates:

Screen Shot 2016-05-26 at 10.11.29 AM

Businesses can keep arguing that customer experience doesn’t matter, it’s a touchy-feely construct or get it directly affects the bottom-line and start by designing and measuring customer experience performance management. For more on this see my report, here.

@drnatalie petouhoff, VP and Principal Analyst

Covering Customer-Facing Applications

[i] http://www.webperformancetoday.com/2014/07/16/eight-tricks-improve-perceived-web-performance/

[ii]Robert B. Miller’s 1968 paper, “Response Time in Man-Computer Conversational Transactions, https://www.computer.org/csdl/proceedings/afips/1968/5072/00/50720267.pdf

[iii]http://insights.wired.com/profiles/blogs/47-of-consumers-expect-a-web-page-to-load-in-2-seconds-or-less#axzz498kHSokj

[i] http://www.webperformancetoday.com/2010/06/15/everything-you-wanted-to-know-about-web-performance/.

[i]Dual-task interference in simple tasks: Data and theory. Pashler, Harold Psychological Bulletin, Vol. 116(2), Sep 1994, 220-244. http://dx.doi.org/10.1037/0033-2909.116.2.220

[i] The Concept of Flow: Handbook of Positive Psychology, Nakamura, J. and Csikszentmihayi, M. 2002.

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Implementing Customer Experience, Cloud, IOT or Any Technology Project? Why Will it Fail?

Obviously no one plans on implementing a project that will fail. However, statistics show that over the past 20 years a very large percentage of technology projects do fail to result in the business outcomes that they were expected to meet. The real issue is that leading change (implementing new technology, whether it be CX, transitioning to the cloud, IoT, etc…) is different than the role of leading in general. But this point is often overlooked or some leaders don’t realize how big a difference there is in leading change compared to their every day leadership job.

The reasons projects often fail and the need for orchestrating customer experience projects using organizational change management range from:

  1. Projects ran over budget, were late, or never completed.
  2. Projects were attempted more than once because initial efforts failed.
  3. Only a small part of the organization adopted the new processes or systems.
  4. When the project went live, critical business systems halted, causing loss of revenue, increased costs, dissatisfied customers and frustrated employees.
  5. Parts of the business (or possibly the entire organization) eventually reverted to the old way of doing things.
  6. The return on investment (ROI) and/or stated benefits were never realized.
  7. The project cost the business more money than it saved or generated.

 

Our research shows that there are seven steps for leaders of change leaders can use to be more successful.

Practice #1 – Understand the Business Case for Change

Practice #2 – Start with the Executive Team: Move It from Involved to Engaged

Practice #3 – Engage All Leaders and Prepare Them for the Journey

Practice #4 – Build a Broad Understanding of the Change Process

Practice #5 – Evaluate and Tailor the Change Effort

Practice #6 – Develop Adaptive Leadership Skills in Change Leaders

Practice #7 – Create Change Leadership Plans

Don’t become one of the statistics of failed projects. There are best practices that work.

@DrNatalie Petouhoff, VP and Principal Analyst, Constellation Research

Covering Customer-Facing Applications to Create Awesome Customer Experiences

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