Translating the social paradigm to understand changing human needs in a digital world
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Living the Promise One Moment at a time - Translating the social paradigm of CX for C-suit impact
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Translating the social paradigm to understand changing human needs in a digital world
- 2. Time spend online every day8h 25m In the world6th Social Media2h 48m South African’s spend a large chunk of their time online Source: Global Digital Yearbook for 2019.
- 8. TECHNOLOGY IS CHANGING WHAT IF MEANS TO BE HUMAN
- 9. Maslow Digital Society The Future Self-fulfilment Transcend and self- actualise Do charitable projects Self- Respect Psychological Needs Aesthetic awareness, knowing and understanding the world No strings attached, instant gratification Craving for experience Psychosocial needs Safety, Belonging, Love WIFI- Social Media, Can’t read emotions, Popcorn Brains- Digital Addictions, Narcisism, Post-truth/ Fake News Robotic Engagements and Loneliness Basic Physiological Needs Genetic engineering and mass production of the food chain Polarised food sources create massive food intolerances and large-scale neurological malfunctions- dumbing down of society Food is entertainment, nutrition is pharmaceutical. Psychosocial needs adjust to a digital world
- 10. Transcendence Physiological Safety Love & Belonging Cognitive Self actualisation Aesthetic Esteem
- 14. A long terms view of service levels in South Africa 7 84 45 0 10 20 30 40 50 60 70 80 90 100 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Dissatisfaction (0-4) Satisfaction including Delight (6-10) Delight (9-10) Ask Afrika Orange Index ® Score
- 15. Overall service What do customers expect? • Zero repeats, which means the importance of FCR is more important than ever before • Personalized service: Customers don’t want to be case numbers with IVR causing frustration if not personalised Reality: • 62% of companies do not respond to customer service emails • 90% of companies do not acknowledge or inform the customer that an email has been received • 97% of companies do not send a follow up email to customer to see if they are satisfied with the response • Only 20% of companies are able to answer questions in full on the first reply • The average response time to handle a customer service request is 12 hours and 10 minutes (Customer service benchmark report 2018) 92%of customers say they would stop purchasing from a company after 3 or fewer poor customer service experiences
- 16. Overall service construct performance 0 20 40 60 80 100 Trust Reputation Relationship Loyalty Fairness Service Effort FCR Emotion 2017 2018 Biggest drivers to explain Loyalty Biggest drivers to explain service and emotional satisfaction Biggest drivers to high channel satisfaction Biggest loyalty detractor if not in place. Also biggest detractor from emotional satisfaction Biggest discriminating factor to yield loyalty High correlation with reliability, responsiveness and humanness Top 10 companies have a 30% higher NPS rating compared to bottom 10 companies Relationship, FCR and Fairness biggest impact on emotion satisfaction
- 17. Overall service construct performance Index Score Loyalty CSR Values Effort Empathy Emotion + - Fairness Effort Responsiveness Trust Reputation Relationship
- 18. ACTION STEPS
- 20. BEYOND THE DATA CHANNEL
- 21. BUBBLE REALITY
- 22. IMPRACTICAL VOICE “mirror mirror on the wall…. Who is the most impractical of them all…?”
- 23. Employee and Customer Brand Engagement Making & communicating the promise CX Programme Keeping the promise Performance Metrics Brand, CSI, VOC Measuring the promise Meaningful strategic outcomes Living the promise External experience promise Employee and customer journey mapping - understanding and identifying touchpoints & delight & pain-points Continuous customer feedback, testing transaction specific experiences to drive operational metrics Aggregated perception, relationship, loyalty, effort etc to drive tactical goals Industry and cross industry comparative benchmarking with trend forecasts to drive strategic direction Research & measurement objectives that drive value for all stakeholders
- 24. TAKING A BANANA TO A GUN-FIGHT
- 25. • emotionally connected customers from 21% to 26%, • reduced customer attrition rate from 37% to 33% • increased customer advocacy from 24% to 30% • 15% increase in the number of active customers • more than a 50% increase in the rate of same-store-sales growth
- 27. the true sign of intelligence is not knowledge but imagination - Einstein
Hinweis der Redaktion
- In a hyper connected, knowledge sharing intelligent economy, where everyone and everything is connected, customer experience is the next battleground for business. We have established that the solution or at least a part of it is embedded in data We think more data will provide smarter trends, and we end up looking for more data We obsess about AI solutions and better data scientists…and all of this has its place but perhaps the future for now should be less about algorithms and collections of measures, but about ensuring granularity for impact – DISCOVERY Do we have the right leadership skills to drive successful CX initiatives and what should authentic CX leadership look like?
- Technology is overpowering our Palaeolithic brains “The average person checks their phone 150 times a day. Why do we do this? Are we making 150 conscious choices? One major reason why is the #1 psychological ingredient in slot machines: intermittent variable rewards . . . Addictiveness is maximized when the rate of reward is most variable.” ― Tristan Harris, former design ethicist, Google Earlier this year, a US-based global agency, We Are Social, and social media management platform Hootsuite published their Global Digital Yearbook for 2019. The results? A deep dive into the world’s digital habits and the rather expected realisation that humans indeed spend huge chunks of time online. Interestingly, globally the use of the Internet has decreased by 1.7% between 2018 and 2019, although not in our country. With an overwhelming preference for Whatsapp (90% of Internet users), YouTube (84%) and Facebook (82%).
- In many intellectual circles, notions of traditional, unitary identity have long been exiled as passé—identity is fluid and multiple. In a way, the experience of the Internet with its multiple windows and multiple identities brings that philosophy down to earth. But human beings are complex, and with fluidity comes a search for what seems solid. Megacities vs Mega slums; Connected cities vs no tech cities/villages; Increase of tech voice communication versus decrease in human voice communication Artificial intelligence versus human stupidy?; Search for meaning – weekends only; Dark tourism versus the search of romanticism; Culture of now versus yearn for nostalgia; The search for artificial intelligences versus artificial stupidity; Always on versus off the grid; A world of Zero – based; plastic free, emission We can cure cancer, but we can also apply AI to phishing and hacking your bank account. If we think about disruption in terms of how we experience it, it does tend to be leaving society a little confused, unfocused, disengaged and erratic Technology is going internal — separating us from the world, increasingly disconnecting us from human experiences. We are already starting to confuse the magic of the tools with the drug-like effect of constant connectivity, mediasation, screenification, simulation, and virtualisation. The magic is already becoming manic — addictive, tempting, nudging, demanding — so what will happen when the magic quotient reaches 1,000, when technology becomes infinitely more powerful, cheap, and inseparable from us? At some point in the not-so-distant future we may have to consider the ultimate question: Do we now live inside the machine, or does the machine live inside of us? Data is the new oil: pay or become the content.
- Internalisation of technology (TGI) 48% of South Africans agree that social media enhance their personal relationships 41% of South Africans’s can’t live without the internet on their phones Dependency — Leaving our thinking to software and algorithms because it’s just so much more convenient and fast. Confusion — Not knowing if it was the intended human who replied to my emails, or her AI assistant. Or even not knowing if I made my own decision or if I was manipulated by my IDA. Loss of control — Not having a way of knowing if the AI’s anticipation was correct or not, as we could not possibly track the system’s logic or even comprehend the workings of a quantum computing-fueled, machine-learning system. In other words, we would need to either trust it completely or not at all, similar to the dilemma that some airplane pilots are already facing with their autopilot systems. Abdication — Being tempted to leave more tasks to systems that would handle them for us, whether it is coordinating personal schedules, making appointments, or answering simple emails. Then, of course, it would be very likely that we would simply blame the cloud/bot/AI if something went wrong.
- = unprecedented impact on human behaviour How our choices will be shaped if what we see and hear about each other is determined purely by algorithms that are designed to make you stay and view ads as long as possible, rather than by people? What if these tools are not publicly controlled, supervised or regulated…? As Taleb said “The difference between technology and slavery is that slaves are fully aware that they are not free”. Software no longer just “eating the world” but increasingly “cheat the world.” Everyone and everything becomes a data beacon, generating thousands of gigabytes per day, collected, filtered, and analyzed in the cloud by armies of IBM’s Watsons and Google’s DeepMinds applying their hungry, self-learning global AI brains every second. Low-cost, ubiquitous digital technologies have made it possible for us to outsource our thinking, our decisions, and our memories to ever-cheaper mobile devices and the intelligent clouds behind them. These “external brains” are morphing quickly from knowing-me to representing-me to being-me.
- Advances in global education, health, and technology – empowerment of individuals like never before, resulting in increased demands for transparency …. Single person households are the fastest-growing household profile in the period to 2030 1/5 global employees now work remotely, at least some of the time What are you going to do to improve services to ME? How will you protect my privacy and security in the information gap? Implications for CX: Addressing expectations for services from more demanding, more vocal, and more connected middle class Transparent communications and mechanisms Improve stakeholder management skills, particularly with regards to social media communications and customer engagement Think, plan and assess more rigorously the impact that enabling technology will have on a nation’s Leverage advancements in technology to develop evolved channels of service delivery that are integrated, quicker and more scalable. • Address higher cycle rates of skills obsolescence with employment and workforce dislocation consequences through re-skilling training programs Individual choice & Personalisation
- combination of talent with smart insight that enables companies to understand their customers and deliver the knockout blows to their competition.
- TECHNOLOGY ISN’T JUST CHANGING SOCIETY BUT ITS ALSO TECHNOLOGY IS CHANGING WHAT IF MEANS TO BE HUMAN
- MASLOW ‘s VENN diagram of needs (8 levels) Customers don’t think in straight lines. You need to be non-linear. To keep up with your customer, you have to let go of linear thinking. Customers today expect you to be where they are, deliver what they want, when they want it, and how they want it. If they’re browsing your website on their laptop, they will expect that when they next come to your site from their mobile device or tablet, or talk to a sales person in your store, branch or call center, you will pick up right where they left off. Business has become like that old game of Twister. You have to be flexible if you are going to win. Customers’ expectations are also more liquid and no longer based on industry boundaries.
- The Raw Food Diet – the idea of eating only raw foods Keto diet - extreme restriction of all carbohydrates The carnivore diet - just red meat for every meal Fasting - only permitted to eat during predetermined windows of time Breatharians – without food and water Highly restricted but yet indulgent But what are the consequences of such extreme lifestyles?
- A society breeding grounds for dysfunctional behavior. Pathological narcissism? – selfie nation, stories Social autism? – loving our phones more than people Tech addition – mobile devices the new cigarettes Forgetting ourselves exponentially and sleepwalking through digital life, opening the door to a kind of global digital feudalism — where the overlords of technology rule us in ways that are beyond our understanding. Treating people in a social security environment just by the numbers, as disembodied data sources The development of digital egos as a true copy of ourselves thanks to a combination of fast, cheap, and ultra-powerful tools, including mobile cloud technologies, personalization, voice and image recognition, mood analytics, and sentiment analysis. Eventually, we will be constantly connected to machines, and they are getting better and better at reading our minds. It will lead to the end of free will.
- “Super consumers” will be empowered by technologies that enhance human decision-making and create more informed and richer consumer experiences. Companies will be challenged to meet the higher expectations of these consumers. Digital obesity. Every consumer in developed countries unwittingly ingests an estimated 150 pounds of additives — mostly sugar, yeast, and antioxidants, as well as truly nasty stuff such as MSG. Thus consumers are strung along by cleverly engineering a “need-for-more” so that it becomes very hard to find the exit from that kingdom of endless, happy consumption. If this sounds like Facebook or your smartphone, you are getting my drift. The food industry actually calls this cravability or crave-ability. In the world of technology, marketers call it magic, stickiness, indispensability, or more benignly, user engagement. Craving and addiction as tech’s business model. Think 2020 and imagine billions of hyperconnected consumers becoming digitally obese, hooked on a constant drip of information, media, and data — and their own feedback loops.
- Experience levels are declining – globally and locally SA – Service levels have dropped by 1% year-on-year and emotional satisfaction has dropped by 10%. A rapid decline in emotional satisfaction affects all industries On paper, this makes no sense. Never have businesses known more about their customers. The world has more data than ever before. In fact, it’s estimated that by 2020, we’ll produce 44 zettabytes every day. That’s equal to 44 trillion gigabytes. One gigabyte can hold the contents of enough books to cover a 30-foot-long shelf. Multiply that by 44 trillion. That’s a lot of data — too much for most companies to process. And yet front-line employees are still often left operating with data that’s “too little, too late.” From the outside, it looks as if companies have mastered a precise, scientific process. But for most of them, customer experience is still painfully hit-or-miss. Here’s the problem: Everyone talks about customer experience innovation, but no one knows quite what it is or how to attain it. In fact, when we ask customer experience professionals how they’re driving their innovation efforts, we find several misguided approaches that actually thwart differentiation and waste massive amounts of time and money in the process.
- Emotional satisfaction is real but not grasped
- Across all the service benchmarks we see a decline in scores Ons measure trust en reputation = maar deur social media monitoring – what about the silent majority???
- So who should be responsible for and accountable for leading CX strategy? It is the responsibility of the entire value chain. But the CX leads need to take accountability for the leading it. 1. The brand platform — First, define or reaffirm the overarching ideas that represent the brand. REI’s brand platform is the excitement and adventure of the outdoors; Chick-fil-A’s is exceeding customers’ expectations with a servant’s spirit. 2. Customer experience strategy — Then describe the desired customer feelings and perceptions of the brand across all interactions with the organization. An electronics website might want to create a “place” for customers to discover and be delighted by innovations. A hotelier might want customers to feel pampered by legendary service. 3. Business segmentation — The next step is to break down the business into discrete units. For a new brand, segmenting the business by traffic vs. trial vs. transition might be an illuminating approach; a restaurant company might segment by service mode, e.g., eat-in vs. drive-thru vs. carry-out; and a product-line segmentation might be appropriate for a manufacturer. The objective is to identify the different experiences the organization delivers and to articulate the requirements and objectives of each. 4. Customer segmentation — Different target segments have different needs — some customers may value convenience over price, others may be looking for an entertaining experience — so their desired experiences vary. Describe each segment with a profile and a needs inventory, including key drivers of purchase decisions and brand perceptions. 5. Prioritization — Create a grid with the business segments as columns and customer segments as rows. Each business/customer intersection represents a discrete experience to design and deliver. They should be prioritized in order to focus design and management. Prioritization criteria include profit potential, fit with long-term strategy, competitive advantage and differentiation, resource requirements, and how the experience affects and/or reinforces brand values and brand position. 6. Experience design — Determine how to meet the segment-specific needs in each business segment, either by improving existing approaches based on new insights from the architecture or by developing entirely new ones. All the levers of customer experience — product, service, content, channels, touchpoints, pricing, facilities, sensory engagement, etc. — should be considered and described in the design. 7. Assessment and integration — Now the architecture is ready to be inspected for integrity and coherence. Is the brand platform expressed throughout every experience? Do the discrete experiences contribute to the overall customer experience strategy? Do experiences complement and enhance each other, or do they conflict or detract from each other? the greatest challenge to companies today is not keeping up with their competitors, but with their own customers. Customers – whether consumers or business buyers – don’t compare your customer service to that of your competitors, but to the best customer service they receive from anywhere. The same is true for their expectations of your web site, mobile app, loyalty program, branding, and even social responsibility.
- Paradigm shift Platform for CX and how we think about it needs to change We measure so much but not with relevant continuity over time and how we handling issues Longitudinal gap Are we really tracking or simply doing repeat measures – incidents, reactive when flagged. Crisis control Customer lifetime value what does it mean for CX (what to sell and monetize over time, don’t apply for CX)- engineered disconnect – exploitative and superficial – lip-service Most customers aren’t fed up with any one phone call, field visit, or other interaction—in fact, they don’t care much about those singular touchpoints. What reduces experience is something few companies manage—cumulative experiences across multiple touchpoints and in multiple channels over time. Here’s the problem: Everyone talks about customer experience innovation, but no one knows quite how to attain it. In fact, when we ask customer experience professionals how they’re driving their innovation efforts, we find several misguided approaches that actually thwart differentiation and waste massive amounts of time and money in the process.
- Businesses today are constantly generating enormous amounts of data, but that doesn’t always translate to actionable information. The hype becomes problematic when it leads to what is known as “data fundamentalism,” the notion that correlation always indicates causation, and that massive data sets and predictive analytics always reflect objective truth. Pizaa 10:00 want honger nie omdat dit 10:00 is nie. Correlation lead not cause symptom base Former Wired editor-in-chief Chris Anderson embraced this idea in his comment, “with enough data, the numbers speak for themselves.” But can big data really deliver on that promise? Can numbers actually speak for themselves? – there is no such thing as a innocent number Sadly, they can’t. Data and data sets are not objective; they are creations of human design. We give numbers their voice, draw inferences from them, and define their meaning through our interpretations. Data is not the answer, it is merely a tool Companies that want to stay relevant must apply more energy, focus, and resources to creating knock-your-socks-off customer experiences than they ever did before. - AGGREGATE vs granularity wat is die rade off, depending on purpose and understanding fundamental problems you need granularity. Ie berg concept. Convenience over truth
- Check your priviledge: On a related note, Pew’s new survey report on the Internet of Things (IoT) and wearable computing, reveals growing concern about the technology sector’s cognitive privilege — a set of unrestrained assumptions, often based in power and influence, about how the world should operate. Big data’s signal problems won’t disappear. As the geographers Michael Crutcher and Matthew Zook noted after Hurricane Katrina, technologies are always differentially adopted, and “any divide in accessing digital technology is not a one-time event but a constantly moving target as new devices, software and cultural practices emerge.” As we move into an era in which personal devices are seen as proxies for public needs, we run the risk that already existing inequities will be further entrenched. Thus, with every big data set, we need to ask which people are excluded. Which places are less visible? What happens if you live in the shadow of big data sets? For example, consider the Twitter data generated by Hurricane Sandy, more than 20 million tweets between October 27 and November 1. A fascinating study combining Sandy-related Twitter and Foursquare data produced some expected findings (grocery shopping peaks the night before the storm) and some surprising ones (nightlife picked up the day after — presumably when cabin fever strikes). But these data don’t represent the whole picture. The greatest number of tweets about Sandy came from Manhattan. This makes sense given the city’s high level of smartphone ownership and Twitter use, but it creates the illusion that Manhattan was the hub of the disaster. Very few messages originated from more severely affected locations, such as Breezy Point, Coney Island and Rockaway. As extended power blackouts drained batteries and limited cellular access, even fewer tweets came from the worst hit areas. In fact, there was much more going on outside the privileged, urban experience of Sandy that Twitter data failed to convey, especially in aggregate. We can think of this as a “signal problem”: Data are assumed to accurately reflect the social world, but there are significant gaps, with little or no signal coming from particular communities. WHAT DO WE FAIL TO SEE AND UNDERSTAND IN AGGREGATED REPORTING
- Reporting paralysis can occur when teams are so wrapped up in distributing data, ensuring data quality, or writing up insights that they forget the purpose of data. If you “measure everything and report everywhere,” you’re not being strategic with your data. In an age of big data and numerous analytics platforms, it’s all too easy to start seeing your customers as little more than numbers in a spreadsheet, or profile-IDs bobbing through a customer journey visualization. While all this data is useful – and machine learning is quickly making it even more. A true CX leader will see beyond the data, and will think in terms of personas, behaviors, and decisions, rather than conversion rates and cart abandonments. We know that data insights can be found at multiple levels of granularity, and by combining methods such as ethnography with analytics, or conducting semi-structured interviews paired with information retrieval techniques, we can add depth to the data we collect. We get a much richer sense of the world when we ask people the why and the how not just the “how many”. This goes beyond merely conducting focus groups to confirm what you already want to see in a big data set. It means complementing data sources with rigorous qualitative research. Social science methodologies may make the challenge of understanding big data more complex, but they also bring context-awareness to our research to address serious signal problems. Then we can move from the focus on merely “big” data towards something more three-dimensional: data with depth Under developed or unleveraged customer data does not offer the level of granularity required to know the deeper aspects of consumers. To offer exceptional CX business need to know you on a much deeper level Customer experience (CX) goes beyond measuring the relationship between customers and companies; it is also about quantifying the hundreds of regular interactions and residual memories that influence future behavior. Specific tools like journey mapping and touchpoint management are keys that employees can use to unlock the code for many in-store and in-person experiences. But it’s important for your team to understand the context in which data is being used to make company-wide decisions. Therein lies largely untapped potential for companies to accelerate their growth and separate from the competition. By looking microscopically at their markets and their current performance relative to rivals’, companies can develop far better growth strategies. This additional granularity becomes especially important during economic downturns because it enables much more nuanced strategies, both in terms of cutting costs and of going on the offensive.
- Customer experience innovation happens at the intersection of consumer needs, business model, and brand. Companies that neglect one or more pieces of this innovation puzzle will be forever relegated to customer experience mediocrity, on par with throngs of other companies desperate to fix their experience issues and retain customers. Most customer experience (CX programs) are positioned as strategic, but quickly veer away from business objectives and become simply about tracking CX metrics. Contact centres have become the data hub of most CX strategies – but does this make sense? Time passes slowly, data continues to mount, and paralysis sets in. Big, strategic goals evolve into score improvements and incrementalism instead of gleaning useful insights that allow change with confidence.
- Most CX programs are broken in similar ways: They are not designed with change or innovation in mind. They have “soft” metrics rather than real business goals. They move slowly and without purpose.
- Stakeholders C-suite Peers Team Challende the excuses Become specific and commercial Ownership. There must be a program owner: a single person who is ultimately responsible for the success and quality of the program. Expertise. The leader doesn’t have to know everything about the business, research methods and analytics, or strategy to be effective. But the more they know about each, the more effective the program will be. Resources. Multi-million dollar budgets aren’t necessary to create or capture value. Start with a basic budget commensurate with those of an IT program. Let them demonstrate value to earn more resources. Empowerment. Give your leader the authority to be successful.