This document discusses achieving competitive advantage through superior customer experience. It shows that companies with best customer experience ("CX Leaders") significantly outperformed "CX Laggards" and the S&P 500 in stock performance between 2007-2012, with Leaders outperforming Laggards by 77%. However, only 8% of customers actually agree they receive superior experience, despite 80% of companies believing they provide it. To win, companies must use data insights to customize experiences, operationalize empathy through processes, and have courage to innovate and challenge norms. Following this "yellow brick road" of brains, heart, and courage leads to customer experience success.

1. Achieving Competitive Advantage
Through the Customer Experience

2. Or… What can the Wizard of Oz teach us about
building lasting bonds with customers

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What do These Companies

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Have to do With These Companies?

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They Were Both Part of a Study Measuring the
Economic Impact of CX

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Survey Question
What do you think was the % difference in stock
performance between the CX Leaders and Laggards?
10%? 26%? 77%? 52%?

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Source: Forrester and Watermark
Customer Engagement Leaders Outperform the Market
Leaders vs. Laggards vs. S&P 500 (2007-2012)
50%
40%
30%
20%
10%
0%
-10%
-20%
-30%
-40%
CumulativeTotalReturn
Customer
Experience
Laggards
S&P 500
Index
Customer
Experience
Leaders
Leaders
Outperform
Laggards by
77%
-34%
14.5%
+43%

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Survey Question
How would you describe the quality of
your customer experience ?

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Perception vs. Reality
100%
80%
60%
40%
20%
0%
PercentofCompanies
80%
of companies
believe they
provide a
superior
experience
Believers (Non-Achievers) Achievers
But only
8% of Customers agree
(Source: Bain & Satmetrix)

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How did
this happen?

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The Twister of Technology Changed Everything

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The Days of Competing on Product and Price are Over
Differentiate on price
How low can you go?
Differentiate on product
Today’s innovation is
tomorrow’s knockoff
The new
differentiator
Differentiate on
customer experience

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Because We Aren’t in Kansas Anymore

14. How do You Win?

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It Takes a Brain
Using customer
data and insight

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A Heart
Operationalizing
empathy – with
systems and
processes

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Courage
To innovate and
challenge the
status quo

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Use data: 4 Levels of Maturity
Maximize customer
profitability by
leveraging Big Data
with company data
to customize
products, pricing and
channels for each
customer
Combining data from
across the company
to develop
predictive models
that will feed
relevant,proactive
outreach that builds
value
Reaching out to
customers first based
on behavior or value
triggers, typically
developed in one
department (care,
marketing, retention)
Reacting to
customers based
on their behavior or
explicit feedback
Reactive
Proactive
Predictive
Psychic

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Have Empathy:
Understand What They Want and Operationalize It
Listen to VOC and innovate.
Put people and processes in place to make CX
a part of the company DNA – culture – the way
we do things around here.
Think like your customers - have empathy.
Just make it simple.
It costs at least twice as much to deliver a poor
customer experience as a good one. Build the
customer focus in from the beginning.

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Find courage: Try new things
Question the status quo.
Break down the product silos.
Empower CX leadership across divisions.
Compensate based on NPS improvement.
Bring the customer to every meeting.

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Bring brains, heart
and courage to
your customer
experience
journey and you
will find your
way to success
Follow the Yellow Brick Road

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@MarkGrindeland
CMO
TeleTech