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The CMO in a
Customer-Activated
Enterprise
Findings from the IBM Global C-Suite Study, 2013
LUCA DESTEFANIS
IBM, Asia Pacific
AmCham Shanghai CMO Forum
February 20th, 2014

© 2013 IBM Corporation
remember ?

4P? 1 !
2

© 2014 IBM Corporation
Understanding customers as individuals is becoming a key
priority area for all CxOs
Shifting Focus: Customers As Individuals
54%

33%
Focus on customers
as segments

Focus on customers
as individuals
Neutral

CxO predict to improve the level of customer
understanding in the next 3-5 years

High level of customer understanding drives
superior financial performances

35%
76

%

117

Today

%

more

35

%

76%
3–5 Years

3

Source: 2013 Global C-suite Study

29%

62

%

more

Underperformers

47%
Outperformers

© 2014 IBM Corporation
China Mobile leverages
customer data to offer
personalized
recommendations

➔ analyze user behavior to build profiles and
develop personalized service offerings

➔ recommend personalized applications on their
smart phones, and suggests the best device
for users when they are ready to upgrade

➔ build on user profile to extend customer
usage of VAS as well as carrier loyalty

© 2014 IBM Corporation
KNOW YOUR
CUSTOMERS
AS
INDIVIDUALS

➔ Instrument all the key touchpoints to gather the
right data about each customer
➔ Connects social media data, transaction data
and other information to paint a more vivid
picture of each customer
➔ Run real time customer analytics (descriptive,
predictive, prescriptive) to generate new ideas
on whom to serve, and how to best serve that
individual
➔ Use social mining techniques to identify and
target micro-segments, and to refine product /
services offering
➔ Build the capability to do this at a massive
scale

5

© 2014 IBM Corporation
Focus on Customer Experience is not new. But still, the biggest
challenge for CMOs
Change of focus: Customer Experience Management
34%

CEO

41%
Today

CFO
CHRO
CIO

9%

13%

3–5 Years
29%

38%

28%

46%
75%

CMO

77%

Few companies have a fully integrated digital-physical
strategy

Focus on improving the customer experience drives
superior financial performances

31%

26%
more

Underperformers

39%
Outperformers

6

Source: 2013 Global C-suite Study

42%
%
29more

Underperformers

54%
Outperformers

© 2014 IBM Corporation
The North Face is bringing
online the in-store shopping
experience

➔ design the online customer experience
around customer needs

➔ bring online the expertise of the best personal
shopper through cognitive computing

➔ rather than forcing people to conform to
systems, create a systems that conform to the
ways people naturally process information

© 2014 IBM Corporation
CREATE VALUE
AT EVERY
TOUCH

➔ Create personas and experience journey map
that deeply understand and consider customer
needs, drivers and emotions
➔ Design tailored experiences that connect the
company and like-minded customers
➔ Creates and automates in real time a system of
engagement to deliver these personal
interactions
➔ Break down company silos, integrate channels
➔ Build a system of shared valued and behaviors
that focuses employee activity on improving the
customer experience

8

© 2014 IBM Corporation
Leading companies are moving from being customer-centric to
being customer-activated
Shifting Focus: Organizational Openness

28%

52%

Operational control

Organizational openness
Neutral

Where CxOs want to include customers

Collaboration with customers drives superior
financial performances

New product and
service definition

82%
71%

Product/service testing
Customer policies and
procedures development
Business strategy
development
Pricing structure
development
Environmental and social
policies development

59%

33%
Today

9

Source: 2013 Global C-suite Study

75%

39%

72%
60%

43%
48%

90%

56%
50%

54

%

more

Underperformer
s

60%
Outperformers

3–5 Years

© 2014 IBM Corporation
Lego opens up to consumer
influence, enabling and
rewarding co-design

➔ bring Design out of the Design Department:
first across all company functions, and then out
of the corporate boundaries

➔ “Cuusoo” website engages consumers to
develop ideas for future Lego products

➔ Lego promises 1% of net sales to ideators
following idea commercialization

© 2014 IBM Corporation
OPEN UP TO
CUSTOMER
INFLUENCE

➔ Break down organizational filters, internalize
consumer influence
➔ Leave room for others to co-create with you,
providing a platform for open innovation
➔ Explore and exploit new capabilities to help
customers achieve their desired results where
and when they want more quickly and efficiently
➔ Pursue continuous innovation and
experimentation
➔ Reward customers for co-designing with you

11

© 2014 IBM Corporation
1. KNOW YOUR CUSTOMERS AS INDIVIDUALS
2. CREATE VALUE AT EVERY TOUCH
3. OPEN UP TO CUSTOMER INFLUENCE

12

© 2014 IBM Corporation
Luca Destefanis
destluca@cn.ibm.com
m: 156 0192 5102
tw: @lucadeste

ibm.com/csuitestudy

13

© 2014 IBM Corporation

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The CMO in a Customer-Activated Enterprise

  • 1. The CMO in a Customer-Activated Enterprise Findings from the IBM Global C-Suite Study, 2013 LUCA DESTEFANIS IBM, Asia Pacific AmCham Shanghai CMO Forum February 20th, 2014 © 2013 IBM Corporation
  • 2. remember ? 4P? 1 ! 2 © 2014 IBM Corporation
  • 3. Understanding customers as individuals is becoming a key priority area for all CxOs Shifting Focus: Customers As Individuals 54% 33% Focus on customers as segments Focus on customers as individuals Neutral CxO predict to improve the level of customer understanding in the next 3-5 years High level of customer understanding drives superior financial performances 35% 76 % 117 Today % more 35 % 76% 3–5 Years 3 Source: 2013 Global C-suite Study 29% 62 % more Underperformers 47% Outperformers © 2014 IBM Corporation
  • 4. China Mobile leverages customer data to offer personalized recommendations ➔ analyze user behavior to build profiles and develop personalized service offerings ➔ recommend personalized applications on their smart phones, and suggests the best device for users when they are ready to upgrade ➔ build on user profile to extend customer usage of VAS as well as carrier loyalty © 2014 IBM Corporation
  • 5. KNOW YOUR CUSTOMERS AS INDIVIDUALS ➔ Instrument all the key touchpoints to gather the right data about each customer ➔ Connects social media data, transaction data and other information to paint a more vivid picture of each customer ➔ Run real time customer analytics (descriptive, predictive, prescriptive) to generate new ideas on whom to serve, and how to best serve that individual ➔ Use social mining techniques to identify and target micro-segments, and to refine product / services offering ➔ Build the capability to do this at a massive scale 5 © 2014 IBM Corporation
  • 6. Focus on Customer Experience is not new. But still, the biggest challenge for CMOs Change of focus: Customer Experience Management 34% CEO 41% Today CFO CHRO CIO 9% 13% 3–5 Years 29% 38% 28% 46% 75% CMO 77% Few companies have a fully integrated digital-physical strategy Focus on improving the customer experience drives superior financial performances 31% 26% more Underperformers 39% Outperformers 6 Source: 2013 Global C-suite Study 42% % 29more Underperformers 54% Outperformers © 2014 IBM Corporation
  • 7. The North Face is bringing online the in-store shopping experience ➔ design the online customer experience around customer needs ➔ bring online the expertise of the best personal shopper through cognitive computing ➔ rather than forcing people to conform to systems, create a systems that conform to the ways people naturally process information © 2014 IBM Corporation
  • 8. CREATE VALUE AT EVERY TOUCH ➔ Create personas and experience journey map that deeply understand and consider customer needs, drivers and emotions ➔ Design tailored experiences that connect the company and like-minded customers ➔ Creates and automates in real time a system of engagement to deliver these personal interactions ➔ Break down company silos, integrate channels ➔ Build a system of shared valued and behaviors that focuses employee activity on improving the customer experience 8 © 2014 IBM Corporation
  • 9. Leading companies are moving from being customer-centric to being customer-activated Shifting Focus: Organizational Openness 28% 52% Operational control Organizational openness Neutral Where CxOs want to include customers Collaboration with customers drives superior financial performances New product and service definition 82% 71% Product/service testing Customer policies and procedures development Business strategy development Pricing structure development Environmental and social policies development 59% 33% Today 9 Source: 2013 Global C-suite Study 75% 39% 72% 60% 43% 48% 90% 56% 50% 54 % more Underperformer s 60% Outperformers 3–5 Years © 2014 IBM Corporation
  • 10. Lego opens up to consumer influence, enabling and rewarding co-design ➔ bring Design out of the Design Department: first across all company functions, and then out of the corporate boundaries ➔ “Cuusoo” website engages consumers to develop ideas for future Lego products ➔ Lego promises 1% of net sales to ideators following idea commercialization © 2014 IBM Corporation
  • 11. OPEN UP TO CUSTOMER INFLUENCE ➔ Break down organizational filters, internalize consumer influence ➔ Leave room for others to co-create with you, providing a platform for open innovation ➔ Explore and exploit new capabilities to help customers achieve their desired results where and when they want more quickly and efficiently ➔ Pursue continuous innovation and experimentation ➔ Reward customers for co-designing with you 11 © 2014 IBM Corporation
  • 12. 1. KNOW YOUR CUSTOMERS AS INDIVIDUALS 2. CREATE VALUE AT EVERY TOUCH 3. OPEN UP TO CUSTOMER INFLUENCE 12 © 2014 IBM Corporation
  • 13. Luca Destefanis destluca@cn.ibm.com m: 156 0192 5102 tw: @lucadeste ibm.com/csuitestudy 13 © 2014 IBM Corporation