Cory Munchbach, Analyst Webinar Align Your Brand And Customer Experience Strategies To Drive A Customer-Obsessed Enterprise Cory Munchbach, Analyst January 15, 2014. Call in at 12:55 p.m. Eastern time @corinnejames

Agenda The customer experience imperative in the age of the customer Brand, CX, and marketing converge in 2014 The CMO will architect the new brand/CX paradigm Recommendations and questions

Agenda The customer experience imperative in the age of the customer Brand, CX, and marketing converge in 2014 The CMO will architect the new brand/CX paradigm Recommendations and questions

Michael Porter’s five forces revisited in the age of the customer Source: October 10, 2013, “Competitive Strategy In The Age Of The Customer” Forrester report

We have entered the age of the customer Source: October 10, 2013, “Competitive Strategy In The Age Of The Customer” Forrester report

Customer obsession: A customer-obsessed enterprise focuses its strategy, its energy, and its budget on processes that enhance knowledge of and engagement with customers and prioritizes these over maintaining traditional competitive barriers.

Strategic budget imperatives for the customer-obsessed enterprise Shift spending from general to contextualized customer experiences. Spend less on: Personalization without customer value. Mass emails. Inflexible content management systems. Spend more on: Experience maps for point-in-time relevance. Touchpoint-specific behavior analysis.

CUSTOMER EXPERIENCE WILL SUBSUME MARKETING. The tension that is building between marketing and customer experience will result in a winner — customer experience. Marketing is an important process but will have to take orders from the CX leaders to do the job right in a customer-obsessed world. CMOs who get it will take over the CX role and lead brand and CX together, but those who don’t will have a new boss to answer to.

Marketing is pretending to be customer-obsessed.

CMOs prioritize acquisition over retention. 63% 22% Few marketers use needs-based personas. 8% 69% 36% Segmentation studies are used more than lifetime value.

Customer experience and marketing need to move in the same direction. Image source: Desi Matlock (http://www.desimatlock.com/)

CX strategy lacks a grounding Source: January 14, 2014, “The Convergence Of Brand, Customer Experience, And Marketing” Forrester report

Responsibility for CX is fragmented

Goals and measurement are disconnected Customer experience Marketing Source: November 9, 2012, “Better Customer Experience Correlates To Higher Net Promoter Scores” Forrester report; January 22, 2013, “Embed The Customer Life Cycle Across Marketing” Forrester report

Agenda The customer experience imperative in the age of the customer Brand, CX, and marketing converge in 2014 The CMO will architect the new brand/CX paradigm Recommendations and questions

Image source: Charities Review Council (http://www.smartgivers.org/) Everyone needs to work with the same definitions in order to align disciplines.

Brand definitions Brand [brand] noun: the collection of values, objectives, perceptions, and assets from which the company identify and strategy is built See also brand strategy: a set of guidelines that ensures business decisions and interactions reinforce and convey the brand promise Brand experience: the sum of all the impressions the customer has of and with the brand, including one-way messaging, direct interactions, and peer-to-peer conversations

Customer experience definitions Customer experience [kuhs-tuh-mer ik-speer-ee-uhns] noun: the perception your customers have of their interactions with your company See also customer experience strategy: a plan that defines the intended experience and guides the activities and resource allocation needed to deliver an experience that meets or exceeds customer expectations

Marketing definition Marketing [mahr-ki-ting] noun: the processes and tactics with which expectations for the customer experience are set and brand messages are distributed

How do they all fit together? Image source: Wikimedia Commons (http://commons.wikimedia.org/)

The new hierarchy Brand strategy Customer experience strategy Feedback to maintain alignment Customer experience strategy Operations: marketing, sales, services

Customer touchpoints + brand exposures = total brand experience Source: January 14, 2014, “The Convergence Of Brand, Customer Experience, And Marketing” Forrester report

Agenda The customer experience imperative in the age of the customer Brand, CX, and marketing converge in 2014 The CMO will architect the new brand/CX paradigm Recommendations and questions

Three roles for the CMO in aligning BX/CX Source: January 14, 2014, “The Convergence Of Brand, Customer Experience, And Marketing” Forrester report

Brand and CX alignment guide Seven questions Step-by-step instructions Get started with: Do you have a brand strategy? Do you need to align your brand and customer experience strategies? If yes:

What does this mean for the future? Image source: LittleBeeps (http://littlebeeps.com/) What does this mean for the future?

Tomorrow’s CMO is the Jack (or Jill) of all trades, master of none. Image source: (http://3.bp.blogspot.com/_FWlO7pmadvY/TMseImxMSBI/AAAAAAAAAis/JqRghPBpOy0/s1600/Four+Jacks+1a.jpg)

Agenda The customer experience imperative in the age of the customer Brand, CX, and marketing converge in 2014. The CMO will architect the new brand/CX paradigm. Recommendations and questions

Recommendations Conduct a definitions audit. Burnish your CX chops. Draw up a road map for marketing’s transition.

Download the report from Forrester Download the report from Forrester.com: The Convergence Of Brand, Customer Experience, And Marketing

Cory Munchbach +1 617.613.6534 cmunchbach@forrester.com Twitter: @corinnejames

Questions?

Upcoming Forrester Webinars for CMO Professionals Fund Your L2RM Business Case With A Focus On People And Process Presented by Laura Ramos Wednesday, January 22, 2014 at 11:00 a.m. Eastern time Predictions 2014: B2B CMOs Must Conquer Three Key Initiatives To Prosper Presented by Sheryl Pattek Monday, January 27, 2014 at 11:00 a.m. Eastern time

Cory Munchbach +1 617.613.6534 cmunchbach@forrester.com Twitter: @corinnejames