Customer Experience -the Amazon,Uber, Google way!

I have always believed that words like Customer centricity, Customer experience,Customer obsession etc are all fluff unless there are changes in the company’s operating model. Unless customers are given a place in the boardroom, it isn’t likely that we as consumers would sense a difference, despite all the analytics & technology at play. There is this anecdotal story about Jeff Bezos at Amazon leaving a seat vacant at every important meeting & telling everyone to treat that vacant seat as the customer in the meeting.

Now, companies have petabytes of data & a plethora of technology choices with which they can analyze this big data & get big insights. But the rubber meets the road, when the customer gets a better experience because the “customer data ” enables it!

Today I addressed a webinar at the Super CX week organized by Oracle.

Customer experience is changing as a concept & is creating large opportunities for companies who truly believe in bringing the customer up front & centre. Remember, it is easy to talk about Customer obsession rather than embrace it.

India now has close to 450 million Internet users. In fact, we now have over 440 million Millennials & over 390 million Gen Z consumers(born after year 2000). These consumers think very differently & have very different expectations from brands & companies.

And these youth have a social megaphone that allows to wrest the bargaining power towards them!

This leads to a whole new way of Marketing & these are the trends that I see:

  • Marketing will move towards relevancy
    • “Marketing that is done so well that it feels like a service”-To service is to Sell
  • “Marketing as a relationship”
    • Customers would only respond to “profitable conversations”
    • No one wants a relationship, unless it is relevant
  • Mass customization: segmentation to increase dramatically
    • From 3-5 segments that most businesses maintain to lights-out, automatic modelling that is driven by the data
    • Segment of 1

Delighting customers doesn’t build loyalty; reducing their effort—the work they must do to get their problem solved—does. How do companies embark on such a journey.

A few points to consider:

  1. Support an institutional memory of the customer-different silos or “lines of business” creating campaigns & running them independently means that you do not have a centralised contact history or “intelligence” about customer response
  2. Enable dialogues not just campaigns. If campaigns are seen as just “list pulls”, then anyone who knows basis SQL should be able to do the job. But the consumer is no longer ready to listen to “push marketing” & the creation of a “dialogue factory” is one essential element of a strong Customer strategy
  3. Establish a strong Customer management council: group of top leaders in the company who are able to mediate to solve the issues that arise out of taking customer centric action. This council becomes a strong enabler for Campaign management playing a differentiated role.
  4. Being loyal to customers & not the other way around (customers needing to be loyal to the company). This needs companies to have a longer term view of customer lifetime value & not a short term view of immediate profit. It needs an internal senior level stakeholder who champions the customer cause (CMO?)

Two years back Gartner predicted that by 2017 CMO’s will spend more on IT than CIO’s. Is this happening? So how big is the market for marketing software today? IDC has an answer to that question, $20.2 billion in 2014. IDC expects that the market will have a compound annual growth rate (CAGR) of 12.4% for the next five years, resulting in a $32.4 billion market by 2018.

I would urge CMO’s & CEO’s to first articulate & get board level agreement on a differentiated Customer Strategy. Make Marketing technology & team structure investments after that.

Here is a copy of my presentation at the Super CX week organized by Oracle today. Hope you will evangelize some of these concepts at your company.

Customer Experience Oracle

Your Bank can be Amazon & Google!

Roughly one in three banking and insurance customers globally would consider switching their accounts to Google, Amazon, or Facebook ,if the tech giants offered financial services, according to a new survey.

Google , Amazon & Facebook have been setting standards for degree of personalisation & powerful customer experience.

Newspapers are getting disrupted by online resources. These same web destinations are becoming less relevant as people simply lift and filter the information they want using RSS feeds. The music CD is being unbundled as customers buy individual tracks online Power has shifted to customers: it’s no longer about the products that marketers want to sell but about the content components that users want to consume & mash up together.

The new battlefield lies in the control of the user interface and the customer intelligence system that supports it. Companies that build highly equipped Customer intelligence units will win in the coming days.

The internet is disrupting retail & I am sure Retail banking is also waiting to be disrupted. According to Capgemini’s 2014 World Retail Banking Report (WRBR), less than 40% of customers globally reported positive customer experiences with their financial institution. But banks still push products on their own terms. Take a term deposit for 3 or 6 months? Well, why can’t I have it due on April 28th, which happens to be my birthday?

Google has launched its own mortgage calculator, and imagine what an Amazon Bank could look like, but who are the startups disrupting banking today? Mostly these are the Fintech companies! New age companies are very good at embedding design & personalisation into the fabric of their business.

The other thing, which the new-age companies do very well, is the notion of ‘profitable data sharing’. They do not hesitate to share data across partners to ensure their customers get a kickass solution. They share data through APIs. There are over 14,441 APIs offered by firms today, according to programmableweb.com.

Amit the Co-Founder & Chief Curator of Let’s Talk Payments had this interesting statement:  “As FinTech startups continue to disrupt traditional financial services, banks are also waking up to the fact that offering an open API—where developers can latch on and create very specific customized app solutions—is the way to engage and retain their customers in the future”.

Adaptive Path, a design and user experience consultancy has been acquired by Capitol One. And just before that Daniel Makoski, founder of Google’s modular Project Ara phone project joined Capital One.

In the new digital world, banking & creativity may not be oxymorons!

New banks in India have a unique opportunity to embed “digital” in the fabric of how they do business. But banks are complex with structures that don’t allow for speed. In many cases, eBusiness teams own the mobile banking strategy, but few eBusiness teams have an exclusive mandate over their firm’s mobile banking initiatives. This division of responsibility creates silos and adds significant complexity to the coordination and optimization of Digital efforts.

What does design have to do with finance, money and banking?

Brands that use design very effectively are far easier to spot nowadays because we interact so much with fast growing digital businesses, Ola, Amazon etc. Consumers, especially Millennials, are learning to expect more from the companies they choose to do business with. And they are not limiting their benchmarks within one industry-I want my Netbanking to be as easy as the Uber interface!

‘Project Pokhran’, as Paytm calls its payments bank project is due for launch the summer of 2017 & they may begin to look at banking very differently.

New banks in India ,IDFC & Bandhan, better be listening.

A few years ago Adaptive Path, a design and user experience consultancy was acquired by Capitol One. And just before that Daniel Makoski, founder of Google’s modular Project Ara phone project joined Capital One.

Then Capital one acquired Money management App, Level Money. The app is focused on the Millenials & helps users set savings goals & offers suggestions for what they can do with their extra cash.

Capital One recently launched what is called as Capital one Labs. This is what they call the “rogue innovation arm” of the bank. Lab members have opened a series of “Capital One 360 Cafes”, a hybrid of a coffee shop & a bank branch. Here employees interview café customers to get real time feedback on new prototypes.

In the new digital world, banking & creativity may not be oxymorons!

Some time back I came across this Job requiremnet at Capital one:

Design Strategist

As a strategic thinker with a focus on innovation for our banking business, you will have the opportunity to define, design, and develop new products and services that defy industry expectations and meet real human needs.

At Capital One, we’re building a leading information-based technology company. Still founder-­led by Chairman and Chief Executive Officer Richard Fairbank, Capital One is on a mission to help our customers succeed by bringing ingenuity, simplicity, and humanity to banking. We measure our efforts by the success our customers enjoy and the advocacy they exhibit. We are succeeding because they are
 succeeding.

New banks in India have a unique opportunity to embed “digital” in the fabric of how they do business. Maybe some of them will come up with teams that include a “Design strategist”.

But banks are complex with structures that don’t allow for speed. In many cases, eBusiness teams own the mobile banking strategy, but few eBusiness teams have an exclusive mandate over their firm’s mobile banking initiatives. This division of responsibility creates silos and adds significant complexity to the coordination and optimization of Digital efforts.

And yet, the user experience is the key for more consumers to adopt the bank’s digital channels.

As the infrastructure of digital technology — the chips, network connections, computing — becomes ever cheaper, they’re becoming commodities, and the value of tech products is shifting to the design and the user experience. But the real value starts to flow when companies orchestrate the User experience with Personalisation.

Personalization, it seems, is really about gathering exactly the data that’s needed in order to perform a particular task. Think about how Amazon asks users whether purchases were for themselves or as gifts, or how streaming services like Netflix and Pandora ask users to rate content. But personalization is a complex process involving multiple components:

Some areas to ponder about:

  • What do you think about the internet & mobile disrupting banks? Which areas can the banks defend and which are vulnerable to disruption?
  • What do banks need to do to modernise their architectures to compete against the new wave of startups? Will they offer API’s to other brands?
  • What is the new age Customer intelligence unit that can be the nerve centre for competing in this landscape? How do they capture unique customer data & create a competitive differentiator by mapping the Customer DNA ?
  • How will banks completely transform their digital experience? Or would the new Fintech innovators show the banks the way?

It would be interesting to see how the new Indian banks & the existing players shape up to this new reality.

Airbnb & the art of analytics storytelling!

Analytics and data are transforming companies around the world. Yet one of the great difficulties with analytics is that it can be difficult to explain and understand; it is widely held that analytics specialists don’t communicate well with decision makers, and vice-versa. As a result, analytics adoption is still not easy within companies.

Analysts, at one end, are busy learning more specialised & deeply technical methods of analysing data & at the same time they are finding it difficult to get them “heard” within organisations. Influencing ultimate decision makers is similar to selling products or services to external customers.

Analysts need to understand that when they present ideas to decision makers, it is their responsibility to sell – not the decision maker’s responsibility to buy. Rudyard Kipling once wrote that if History was taught in the form of stories, it would never be forgotten.” In her persuasion & power of story video, Stanford University Professor of Marketing Jennifer L. Aaker explains that stories are meaningful when they are memorable, impactful and personal. Have a look at this wonderful story told by Jennifer.
http://bit.ly/1iqcvin

Stories are the best way to influence! But we don’t see them being used so often. Analytics doesn’t need you to solve only a technical problem but a “social” one. Analytics is sexy but for it to make an impact, it needs to be embedded into the fabric of the company. This calls for analysts to become more social & in fact better presenters & story tellers.

They need to learn to demystify analytics & link it to practical ways for the business to make money! And analysts need to learn to link their work to “the last mile”. Analytics should not be expected to deliver a “Aha moment”, instead it should be a “factory approach to improved decisions”. So analytics is not just a planning tool as much as it is an Execution tool to improve the customer experience & business impact. Start with a decision in mind & work backwards, not with the data in mind & working forward. And today with reams of external data available to most marketers, analytics can even mash up different kinds of data & improve the Customer experience.

Compare the analytics industry with the world of journalism. One of the most deadline filled industries in the world is getting it right with what it calls precision journalism! Despite crazy deadlines, I am amazed at the powerful stories journalists write using data. I wish the analytics industry was half way as good!!The corporate world needs to learn from this & use data to tell stories better! Journalists are coping with the rising information flood by borrowing data visualization techniques from computer scientists, researchers and artists. Some newsrooms are already beginning to retool their staffs and systems to prepare for a future in which data becomes a medium.

Analysts are often tempted to communicate how they did the analysis: “First we removed the outliers from the data, then we did a logarithmic transformation; that created high autocorrelation, so we created a one-year lag variable”—& the typical business user is already yawning! The audiences for analytical results don’t really care what process you followed; they only care about results and implications

Here is an example of a master storyteller. Many people employ static charts, but visual analytics are increasingly becoming dynamic and interactive. Hans Rosling, a Swedish professor, popularized this approach with his frequently viewed TED Talk that used visual analytics to show the changing population health relationships between developed and developing nations over time. Rosling has created a website called Gapminder (www.gapminder.org) that displays many of these types of interactive visual analytics

In early 2010, The New York Times was given access to Netflix’s normally private records of what areas rent which movies the most often. While Netflix declined to disclose raw numbers, The Times created an engaging interactive database that let users browse the top 100-ranked rentals in 12 US metro areas, broken down to the postal code level. A colour-graded “heatmap” overlaid on each community enabled users to quickly scan and see where a particular title was most popular.

See more at: http://nyti.ms/1iCAQnp

Brent Dykes has this wonderful take in a Forbes article & I quote:

“It’s important to understand how these different elements combine and work together in data storytelling. When narrative is coupled with data, it helps to explain to your audience what’s happening in the data and why a particular insight is important. Ample context and commentary is often needed to fully appreciate an insight. When visuals are applied to data, they can enlighten the audience to insights that they wouldn’t see without charts or graphs. Many interesting patterns and outliers in the data would remain hidden in the rows and columns of data tables without the help of data visualizations.

data analytics

storytelling with data

Finally, when narrative and visuals are merged together, they can engage or even entertain an audience. It’s no surprise we collectively spend billions of dollars each year at the movies to immerse ourselves in different lives, worlds, and adventures. When you combine the right visuals and narrative with the right data, you have a data story that can influence and drive change”.

change management

Creating organisation changes through storytelling

Also today Marketers have access to a lot of external data. How they mash this up creatively with their own data & produce features that are of value to consumers is going to become very important in the days to come.

Here is an example:

How Airbnb can add more value to its consumers?

Airbnb is making travel easier for its consumers & today they have access to a lot of data that can make the consumer’s buying process easier!There is a lot of data available about city neighbourhoods.I thought of this particular example because of  Ben Wellington’s article in The New Yorker. He used data points from New York City noise complaints not only to map out which neighbourhoods were noisiest, but why they were noisy.

Noise data

New York data

From the screenshot above, you can see that you’ll definitely want to steer clear of two neighbourhood near the Bronx if you hate the sound of ice cream trucks.
How can this help a Marketer?: Imagine if this led Airbnb to import this data & use it to help you in selecting a place to stay. I am fresh from staying in Singapore in an Airbnb apartment which was in a noisy neighbourhood. If this can be created into an index which pops up as I view an Airbnb apartment, it adds another data based layer to my decision of which apartment to choose. You can enhance this with other data like Crime in the neighbourhood etc & suddenly data is actually adding much more value to the AirBnB platform.
So if data based storytelling can be linked to “How customers buy” , that can hugely enhance a customer’s experience & value. Think about how you can do this in your business & use storytelling to impact key decisions in your company & also your customer experience.