Design All Your Customer Interactions For B2B Success Webinar Design All Your Customer Interactions For B2B Success Peter O’Neill, Vice President, Principal Analyst December 12, 2012. Call in at 10:55 a.m. Eastern time

Agenda Customer experience does matter in B2B. You must consider all potential interactions between your businesses. Developing a business case for B2B CX Voice-of-the-customer programs are a design foundation. Take an “outside-in” approach to B2B CX design.

Agenda Customer experience does matter in B2B. You must consider all potential interactions between your businesses. Developing a business case for B2B CX Voice-of-the-customer programs are a design foundation. Take an “outside-in” approach to B2B CX design.

There are at least four myths about B2B CX Customer experience is a consumer thing. Switching costs make customer experience irrelevant. Complex B2B relationships dilute the notion of a customer experience. Source: alibaba.com Partners control the experience, so B2B companies don’t have to care. © 2012 Forrester Research, Inc. Reproduction Prohibited 4

Why CX matters for B2B marketers The customer now “owns” your brand based on their perceptions. Customer experience redefines the funnel; customers tell your story for you, generating leads and brand awareness. Customer experience is critical for growth ambitions, not just for retention, cross-sell, and upsell. Many B2B tech companies are B2B2C; it behooves them to think like their B2C customers. © 2012 Forrester Research, Inc. Reproduction Prohibited 5

This thought experiment is already a reality Customer has been running XYZ’s business application for many years. As it is considered a mature system, the company switched to a third-party support provider. John (hired to replace retiree Phil) Uses XYZ application and is unsatisfied with performance Complains to supervisor Tweets his frustration with XYZ Researches on XYZ’s website for more information Supervisor tells John “No change is possible.” Receives phone call from XYZ sales rep to sell him same software again Receives lead “nurturing” emails from marketing organization of ABC Supervisor reports problem to service desk (SD). John’s peers retweet his frustration, tweet at John about SaaS alternative, ABC. Line of visibility SD agent responds: “XYZ works as designed; no change is possible.” XYZ’s L2RM system qualifies John as a hot lead due to website activity. Listening platform of ABC spots John as a potential lead. Marketing automation platform issues email. Source: Upcoming Forrester report © 2012 Forrester Research, Inc. Reproduction Prohibited

Agenda Customer experience does matter in B2B. You must consider all potential interactions between your businesses. Developing a business case for B2B CX Voice-of-the-customer programs are a design foundation. Take an “outside-in” approach to B2B CX design.

Customer experience now involves all company silos Marketing, sales, product, support, billing Phone Partner Digital In-person Back office, IT, ops, shared services, corporate © 2012 Forrester Research, Inc. Reproduction Prohibited 8

Cross-touchpoint CX drives need for new capabilities Source: August 10, 2011, “The Emergence Of Customer Experience Management Solutions” Forrester report © 2012 Forrester Research, Inc. Reproduction Prohibited 9

Caterpillar’s CX life cycle identifies 12 touchpoints Source: March 14, 2012, “How B2B Firms Improve Customer And Partner Experience” Forrester report © 2012 Forrester Research, Inc. Reproduction Prohibited 10

Agenda Customer experience does matter in B2B. You must consider all potential interactions between your businesses. Developing a business case for B2B CX Voice-of-the-customer programs are a design foundation. Take an “outside-in” approach to B2B CX design.

Who is responsible? “In the absence of a customer experience role, I see myself as owning the customer experience.” Katy Keim CMO, Lithium

The L2RM process includes retention and expansion Lead-to-revenue management (L2RM) Opportunity Lead nurturing Sales process Awareness origination Initial revenue Customer life-cycle revenue Customer retention and expansion Source: December 22, 2010, “Lead-To-Revenue Management Transforms Tech Marketing” Forrester report © 2012 Forrester Research, Inc. Reproduction Prohibited

Customer support/service staff receive CX signals, but they do not do marketing Focus on problem fixing. “User misunderstandings” prevail. Profit center economics. Feedback is only collected in context. Define what we mean by vehicles © 2012 Forrester Research, Inc. Reproduction Prohibited

Developing a business case for CX program investments Start with cost avoidance (self-service support). Assign a value to customer loyalty or customer lifetime value; it helps to quantify the business risk of churn. Define the value of channel partner loyalty. Model the effect of these customer experience benefits: Incremental purchases from current customers Retained revenue as a result of lower churn New sales driven by customer advocacy Ultimately, a CX program must be executive-led and enterprisewide to drive changes in the company culture, employee behavior, and even product development. © 2012 Forrester Research, Inc. Reproduction Prohibited

Agenda Customer experience does matter in B2B. You must consider all potential interactions between your businesses. Developing a business case for B2B CX Voice-of-the-customer programs are a design foundation. Take an “outside-in” approach to B2B CX design.

Naming a chief customer officer is a common response Chief customer officers by industry: More than 50% of CCOs are in B2B sectors. Source: Harley Manning, Kerry Bodine, and Josh Bernoff, Outside In: The Power of Putting Customers at the Center of Your Business, New Harvest, 2012 © 2012 Forrester Research, Inc. Reproduction Prohibited 17

The voice of the customer comes in several different flavors Source: April 11, 2011, “Executive Q&A: Voice Of The Customer Programs” Forrester report © 2012 Forrester Research, Inc. Reproduction Prohibited 18

A CCO should be senior and empowered Not only . . . An escalation repository for internal and external complaints (“find and fix”) Interested in the largest customers But also . . . A member of the executive management team and willing to get things changed, not fixed Addresses the root causes, not symptoms Much of B2B business is done through channels, so both channel partners and indirect customers are imperative. © 2012 Forrester Research, Inc. Reproduction Prohibited 19

Voice-of-the-customer programs require six basic components Source: April 11, 2011, “Executive Q&A: Voice Of The Customer Programs” Forrester report © 2012 Forrester Research, Inc. Reproduction Prohibited 20

Adobe’s physical customer-listening post Source: Adobe Systems (http://www.adobe.com/) © 2012 Forrester Research, Inc. Reproduction Prohibited 21

EMC’s total customer experience program Source: March 22, 2011, “B2B Case Study: EMC Puts The Voice Of The Customer At The Center Of Its Business” Forrester report © 2012 Forrester Research, Inc. Reproduction Prohibited 22

Agenda Customer experience does matter in B2B. You must consider all potential interactions between your businesses. Developing a business case for B2B CX Voice-of-the-customer programs are a design foundation. Take an “outside-in” approach to B2B CX design.

An “outside-in” approach to B2B marketing Respond to email. Link to web page. Register for webinar. Attend webinar. Answer sales call. Product marketer Interactive marketer Event team SME Sales rep Understand the desired CX (= buyer’s journey). Design content and content delivery to the buyer’s journey. Design internal systems to optimize the CX. © 2012 Forrester Research, Inc. Reproduction Prohibited 24

An “outside-in” design for internal systems Respond to email. Link to web page. Register for webinar. Attend webinar. Answer sales call. Product marketer Interactive marketer Event team SME Sales rep Line of visibility CRM Content management engine Account and territory def. Satisfaction tool Lead management tool Corporate marketing Sales ops Customer service Lead scoring algorithm CMO Product marketing © 2012 Forrester Research, Inc. Reproduction Prohibited 25

Your CX audit or the VoC feedback identifies room for improvement Respond to email. Link to web page. Register for webinar. Attend webinar. Answer sales call. Product marketer Interactive marketer Event team SME Sales rep Line of visibility CRM Content management engine Account and territory def. Satisfaction tool Lead management tool Corporate marketing Sales ops Customer service Lead scoring algorithm CMO Product marketing © 2012 Forrester Research, Inc. Reproduction Prohibited 26

The customer experience continues Orders router software Tech arrives to install. Installation fails. Calls customer service Told there’s no solution Sales rep Charter tech Charter tech Phone agent Phone agent Line of visibility Sales rep gets commission. Scheduling system Third-party HW policy CRM system Third-party HW policy Comp policy Legal dept. Legal dept. Human resources Finance © 2012 Forrester Research, Inc. Reproduction Prohibited 27

Peter O’Neill poneill@forrester.com blogs.forrester.com/peter_oneill Twitter: @poneillforr