Cinny Little, Senior Analyst WEBINAR Drive More Value From Customer Insights: Five Success Factors To Focus On And Steps To Take Now Cinny Little, Senior Analyst March 31, 2016. Call in at 10:55 a.m. Eastern time

Customer obsession is the only way to lead. Image source: Shutterstock (http://www.shutterstock.com)

Agenda Lots of data . . . not enough value Six dimensions of insights-to- action maturity Five success factors for customer insights (CI) value Four steps to take now to advance

You know: Empowered customers are shaping corporate strategies. Information Price Location Technology Institutions Customers Source: “Winning In The Age Of The Customer” Forrester report

Did you know? Better CX drives revenue When customers have choice. Source: “Does Customer Experience Really Drive Business Success?” Forrester report

Example: Online-only leader Amazon leaves Walmart’s overall revenue growth in the dust. Source: “Does Customer Experience Really Drive Business Success?” Forrester report

Firms have huge commitments to data and analytics . . . 65% of firms will be using big data analytics to optimize digital experiences. 49% of firms view improving the use of data and analytics as a business priority. 45% of firms have appointed a chief data officer. Base: 3,005 business and technology decision-makers Source: Forrester’s Global Business Technographics® Data And Analytics Survey, 2015

. . . but decision-maker satisfaction with analytics is going down. “What is your level of satisfaction with analytics in your company?” 21% decrease Base: 1,200 and *595 global data and analytics business decision-makers. Source: Forrester’s Global Business Technographics Data And Analytics Survey, 2015 and Forrester’s Business Technographics Global Data And Analytics Survey, 2014

Firms aren’t driving enough value from data to insights to actions with results. 73% 29% of firms aspire to be data-driven. of firms are good at turning data into action. Source: Forrester’s Q3 2015 Global State Of Strategic Planning, Enterprise Architecture, And PMO Online Survey

Customer/business insights teams: Data must drive insights that must connect to the right actions. Insights-to-execution process Right data All data Possible actions Effective actions Digital insights architecture Source: “Digital Insights Are The New Currency Of Business” Forrester report

The six dimensions of insights-to-action maturity

The six dimensions of insights maturity Forrester’s model for customer insights/business insights maturity Strategy Culture and people Metrics and KPIs Process and org Data Technology Insights maturity framework Source: “Where Are You On The Road To Customer Insights Maturity?” Forrester report

Examples of maturity in each dimension Firm-wide datainsightsactions for CX that matters to results Use of data to drive decision-making is inherent to whole org Strategy Leaders in CI and marketing are measured on customer metrics Right mix of leadership, data science, tech, analytics, strategists Culture and people Standard metrics to assess health of all customer touchpoints from marketing to transactions to service experiences Metrics and KPIs Velocity of insightsaction is driven by more agile processes Process and org Data is a strategic asset in terms of breadth, depth, freshness, quality, and accessibility to those who need it Data Marketing (and other channels), CI, and tech teams must collaborate effectively on tech selection and implementation with focus on insightsactions Technology Source: “Where Are You On The Road To Customer Insights Maturity?” Forrester report

Maturity level key characteristics Strategy Culture and people Metrics and KPIs Process and org Data Technology A top-level leader drives customer centricity firmwide (mktg, ops, product). Employee performance measurement aligns with customer metric(s). Firmwide customer-based KPIs (e.g., lifetime value, NPS) Agile teams across the firm execute datainsights actions. Firmwide data is readily available via biz-friendly tools and well-integrated. Strong tech and partner set balanced between centralized & decentralized A marketing leader drives insights actions for mktg firmwide. Adequate CI pros, data scientists, and technologists Firmwide metrics (e.g., lead scoring, lifetime value, NPS) Agile processes; CI team is org’d as a center of excellence. Firmwide data is readily available and integrated. Descriptive and predictive analytics applied to marketing Insights are used for mktg optimization in some, not all, bizes & regions. CI activity is driven primarily by requests from biz areas. Metrics and KPIs vary — from std in some biz areas to none Insights action cycle slow; data governance inconsistent Some disconnect between CI, mktg, and tech re: quality Descriptive tech tools in use; not tied to priority cust. actions Ad hoc activity; measures some mktg channels, not all; some biz areas, not all Most CI resources have deep biz but limited insights action exper. Measurement limited to counting (e.g., visits, clicks); no tie to biz KPIs or action Little data governance (beyond IT risk work); little insights-to-action done. No or very limited focus on customer data for driving improved CX Ltd internal technology; tech partners may work with 1 biz area or channel only. Source: “Where Are You On The Road To Customer Insights Maturity?” Forrester report

Five success factors for CI value

1. Executive leadership is the critical success factor. Image source: Shutterstock (http://www.shutterstock.com/g/lightspring)

1. Executive leadership is required. This may seem a cliché, but it’s a fact. Example from Forrester research: Based on interviews and review of 16 Forrester CX IndexTM leaders, in all cases, a clear CEO champion led the move to customer obsession. Customer obsession is broad, deep, and, at times, controversial, so executive leadership is a prerequisite. Source: “The Operating Model For Customer Obsession” Forrester report

2. Tech and marketing must get into alignment on customer data. Tech & mktg aligned: Very high priorities: customer intelligence and use of data and insights to set strategic priorities Tech & mktg not aligned: Only half say they have a single view of the customer, and there’s a gap in perception of progress on data. Source: “CMOs And CIOs Must Turn Collaboration Into Action” Forrester report

3. CI capabilities must match business-cycle time needs. Wrong direction! Downward trend in % of marketing projects using analytics for decisions Image source: The CMO Survey (http://cmosurvey.org/files/2015/02/The_CMO_Survey-Highlights_and_Insights-Feb-2015_Compressed.pdf) Base: 288 marketers Source: The CMO Survey, 2015

4. Organization for customer insights Forrester clients’ frequently asked questions regarding CI Where do CI teams report into? How should we organize (centralize/decentralize)? Should we reorganize? Source: Upcoming “Brief: Organizing For Customer Insights — And What Matters More” Forrester report

5. Where CI reports into today Nearly half report into marketing. Source: Upcoming “Brief: Organizing For Customer Insights — And What Matters More” Forrester report

5. Centralize or decentralize? Most new analytics and data science organizations will be centralized; some will be decentralized in business units. Centralized Decentralized Source: Upcoming “Brief: Organizing For Customer Insights — And What Matters More” Forrester report

Don’t respond to organizational silos or barriers by changing the org chart ̶ that may just create new silos or barriers. Image source: Shutterstock (http://www.shutterstock.com/g/lightspring) CI’s capabilities and impact can grow within existing structures no matter where they are.

What can we be doing now? Image source: PhotographyVox (http://www.photographyvox.com/)

Four steps to take now to advance

Four next steps to take now To continue to grow your insights-to-action capabilities. Make it easy for stakeholders to align what you do with what they do. For example, tie insights work to existing, familiar frameworks. Align insights activities with your firm’s culture. 1 Align insights-to-action work with in-place customer metric or framework. Too hard to get started? Find a willing partner, and do a pilot. Expand the use of existing customer-based metrics. 2 Don’t overlook the power of communicating small wins. Cultivate champions; don’t focus on detractors. Tell compelling stories re: customer actions & consequences. Use (or do more) effective self-marketing. 3 Take and score Forrester’s CI Maturity Assessment.* Identify 1-2 actions you can take now with current resources. Talk with other teams and stakeholders about the results. Assess your team’s CI maturity. 4 * Assessment can be found in the “Where Are You On The Road To Customer Insights Maturity?” Forrester report

Cinny Little CLittle@forrester.com

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