fra sporadisk til strategisk
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From sporadic initiatives to strategic goalsetting
Kristoffer Okkels, Senior Digital Business Consultant Simon Kibsgård, Lead Digital Business Consultant
© Creuna
How to develop, prioritize, and measure your digital efforts
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Agenda
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1. A digital perspective on strategy
2. How we work with strategy at Creuna
3. Strategy applied and measured
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A digital perspective on strategy
Times are changing. And we’re in need of…
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Top-PowerPoint menu Digital changes everything © Creuna
Image Courtesy: Gratisography
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Digital changes…
…how products are made …digitally enhanced… …and delivered to us
…how we are educated Image Credits: #1 #2 #3 #4 #5 #6 #7
…how we pay for our coffee …and how we interact
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Consumer
behavior is
changed
for good
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But the
B2B world
is just as
affected
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And it’s
definitely
not only a
local thing
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Every century or so, funda-mental changes in the nature of consumption create new demand patterns that exis- ting enterprises can’t meet. - Shoshana Zuboff, Harvard Business School
© Creuna http://www.mckinsey.com/insights/strategy/creating_value_in_the_age_of_distributed_capitalism
”
”
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Innovation across all industries
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The 5 forces revisited
Heavily borrowing from Forrester
New entrants barrier lower than ever Industry competition
getting fierce
Substitution via disruption
Purchasing power with power-ups
Production, distribution and service come
plug&play
technology empowers buyers with
information and tools Digital services commoditizes physical
products
perfect insight in competitor pricing and
policies
Employees are key to supply
Hiring & retention of talent is key as they carry their ideas with
them
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Go downstream, not upstream
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Production Logistics Sourcing
Customers Insights Innovation
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Don’t ask “What else can we make?” but rather “What else can we do for our customers?” © Creuna
Source: Niraj Dawar, Harvard Business Review. http://hbr.org/2013/12/when-marketing-is-strategy/ar/pr
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Looking from the outside-in customers don’t care about silos
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That’s why this picture is flawed
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Digital Strategy Acme Inc.
Social Media Strategy Acme Inc.
Innovation Strategy Acme Inc.
Marketing Strategy Acme Inc.
Product Development Strategy Acme Inc.
Ello Strategy Acme Inc.
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Digital isn’t a strategy. Digital is the gunpowder that enables a powerful customer experience. © Creuna
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Customers
Business
Technology
Put digital in the sweetspot
Digital
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Global innovation top 1000
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Need seekers
Market readers
Technology drivers
Source: http://www.strategyand.pwc.com/media/file/Strategyand_2013-Global-Innovation-1000-Study-Navigating-the-Digital-Future.pdf
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The key to succes is understanding all three areas, making
deliberate choices about where to compete and applying the
right digital enablers.
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Using digital enablers pays off Percentage saying they outperfom their competitors
© Creuna Source: http://www.strategyand.pwc.com/media/file/Strategyand_2013-Global-Innovation-1000-Study-Navigating-the-Digital-Future.pdf
53%
30%
Significant use of Digital Enablers
Low or moderate use of Digital Enablers
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How digital has enabled the post-it…
© Creuna Source: http://www.post-it.com/wps/portal/3M/en_US/PostItNA/Home/Ideas/Plus-App/
Business
Technology Customers
Digital
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How we work with strategy
The Creuna Approach
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Digital is in the sweetspot of competitive advantage
Customers
Business
Technology
Digital
Customer Experience Design
Digital Business Development
Strategic Technology Optimization
Creuna’s offerings are designed to grow your business
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Top-PowerPoint menu The Brand When everything is up in the air
The Program A new market, solution or target group
The Product When we want to improve a core product
We typically see 3 types of projects…
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Strategy What will we do to fulfil this purpose?
Tactics How and when are we doing it?
Brand, program or product …and 3 levels of strategy
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This is our strategy process
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1. Insights 2. Vision and directives 3. Must-win battles
4. Tactical initiatives 5. Priorities 6. Roadmap
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Acme Bank Low market share among young population
Market fragmentation due to digital disruptors
Desire to be considered a thought leader
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This is our strategy process
© Creuna
1. Insights 2. Vision and directives 3. Must-win battles
4. Tactical initiatives 5. Priorities 6. Roadmap
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© Creuna
Customers
Business
Technology
Insights across the plate
Digital
touchpoint analysis analytics observations and interviews external focus groups
platform analysis compatibility research digital maturity analysis
market and competitor analysis stakeholder interviews internal focus groups
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This is our strategy process
© Creuna
1. Insights 2. Vision and directives 3. Must-win battles
4. Tactical initiatives 5. Priorities 6. Roadmap
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Visions aren’t just fluffy words
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Makes strategies easier to communicate
Unites and motivates employees…
…and leaves room for contextual interpretation
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Without a vision it’s just parts
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The vision is foundation for design principles
…and makes tactical prioritization easier
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Top-PowerPoint menu Sense In what way do you provide a sensory experience? Feel What feelings are left behind? Think Which mental implications are implied? Act What physical implications are proposed? Relate What identifies you as a group or culture?
Visions should be engaging
© Creuna Source: Bernd Schmitt: Experiental Marketing (1999)
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© Creuna Source: Bernd Schmitt: Experiental Marketing.
To be a visually appealing and elegant bank, a kind and trustworthy bank, responsible and foresighted, service- and action-oriented, and international and German at the same time.
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© Creuna Source: Bernd Schmitt: Experiental Marketing.
To be a visually appealing and elegant bank (sense), a kind and trustworthy bank (feel), responsible and foresighted (think), service- and action-oriented (act), and international and German at the same time (relate).
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This is our strategy process
© Creuna
1. Insights 2. Vision and directives 3. Must-win battles
4. Tactical initiatives 5. Priorities 6. Roadmap
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While the vision sets the ambition, must-win battles represent the strategies needed to realize the vision.
Must-win battles
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Must-win battles 1 2 3 4 5
Business
Technology Customers
The Vision
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A must-win battle framework
To be a visually appealing and elegant bank, a kind and trustworthy bank, responsible and foresighted, service- and action-oriented, and international and German at the same time.
Vision Key success factors • Build brand awareness and image among young consumers utilising both segment
specific marketing activities and cross segment synergies
• Introduce digital customer facing tools
• Digital customer service
• Build and launch targeted online platform
• Establish ecommerce sales on specific test markets
• Develop detailed country-specific retail channel strategies (direct markets)
• Implement tiering model for indirect markets
• Work closely with key growth markets to ensure that they get the necessary support and focus in order to realise the potential
• Strengthen (expand) product innovation team
• Establish strategic technology partnerships
• Expand product categories to attract new customer groups (digital generation) integrating with mobile devices
• Optimise existing product portfolio
Must-win battles
Increase brand value and reach through stronger marketing and a new online channel strategy.
Increase market effectiveness in direct markets and large indirect markets.
Strengthen the product development team and launch new products targeted young consumers.
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A must-win battle framework
• Build brand awareness and image among young consumers utilising both segment specific marketing activities and cross segment synergies • Introduce digital customer facing tools • Digital customer service • Build and launch targeted online platform
Increase brand value and reach through stronger marketing and a new online channel strategy.
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Business Performance
Net income
Margins
Price Cost
Volumes
Market share Market size
Customer Satisfaction
NPS Loyalty
Customer Effort Score
How do we link must-win battles to business performance?
© Creuna
Increase brand value and reach
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This is our strategy process
© Creuna
1. Insights 2. Vision and directives 3. Must-win battles
4. Tactical initiatives 5. Priorities 6. Roadmap
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Coherence is key
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Tactical initatives
Every tactical concept should be able to be traced back to the must-win battles in order to be aligned with the vision.
Must-win battles 1 2 3 4 5
Business
Technology Customers
The Vision
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Sources of inspiration
© Creuna
Ideation workshops
Existing idea backlogs
Service and support center …
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Which initiatives will stick around?
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Top-PowerPoint menu Let’s use Facebook for customer service
Let’s launch an online mortgage calculator
Two tactical concepts
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Insights E.g. “A lot of direct mails/calls to Support are from people, that did already visit Service & Support section without any luck. Support estimates, that manual handling of trivial support costs € per enquiry.“
Anchoring tactics Facebook for customer service
Net income
Margins
Cost
Facebook support
Performance Tactics
Tactics # Use Facebook to respond more effectively to customer enquiries
Tactics# Use new Facebook presence to market superior digital customer service.
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Insights E.g. "of people using our mortg. calc., 36% file an application. Sales estimate, that 20% of these are converted into new customers. A new customer is worth € in life time value“
Anchoring tactics Online mortgage calculator
Net income
Volumes
Market share
New application
filers
Users of mortg. Calc.
Performance Tactics
Tactics # Calculator to make it easier to find the right mortgage for first time buyers
Tactics# Use Twitter to get more urbanities to know about and try our calculator.
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Enter the business case
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The actual metrics for the business case are obviously dependent on the context of the specific initiative, but the case should ultimately be cohesive with the business KPIs.
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Tactical concept example #1 Facebook for customer service
© Creuna
Trustworth-iness (vision)
Service-orientation
(vision)
Brand value (MWB)
Market reach (MWB)
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Tactical concept example #2 Online mortgage calculator
© Creuna
Trustworth-iness (vision)
Service-orientation
(vision)
Brand value (MWB)
Market reach (MWB)
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New biz sales: + 4,9% Churn: - 5,9%
Revenue: +3.500.000 EUR
+23.000 customers
PERSONALISERET WEBOPLEVELSE
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Tactical concepts ROI forecast
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How to pick and prioritize
Contribute most significantly to bottom and/or top line
Are critical to a large volume of important customers
Fit customer journeys and create unique and memorable experiences
Are likely to create customer satisfaction and loyalty
Are currently under- or over performing
Define and prioritize by asking which tactical initiatives:
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start small!
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This is our strategy process
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1. Insights 2. Vision and directives 3. Must-win battles
4. Tactical initiatives 5. Priorities 6. Roadmap
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A combination of at least goals, time and scope of tactical initiatives in a way that is: • Prioritizable • Executable • Communicable
What’s a roadmap?
Preferably the roadmap will also relate to other current focal points of the organization like: • Prioritized target groups • Strategic and practical constraints • Implemented technologies • Internal stakeholders
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Initiatives often come in wonderful spreadsheets…
57 © Creuna
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Initiatives relate to strategies
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Create platform
Enable Sales
Personalize Shopping Experience
Expand Choice
Engage Customers
Secure Retention + Loyalty
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Our five basic colours Yellow, Blue, Red, Green and Grey
These are the colours we use for backgrounds
Darker colours You’re basically free to use the different
saturations of the colours, but we still recommend these second to darkest ones
Change background colour 1. Click on slide
2. Choose Format Background 3. Select Fill and choose your colour and click OK
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s
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Relating to must-win battles…
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A good roadmap…
1. Catches eyeballs 2. Invites to dialogue 3. Is easy to communicate 4. Relates to established
strategic ambitions 5. Is both proactive and a way of
”exhausting crazy ideas” 6. Is open to change
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Strategy applied and measured
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Meet Peter.
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Peter needs a new credit card. Peter goes online to apply for the card.
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Three levels of a relationship…
Level 2. A customer journey E.g. getting a new credit card
Level 3. An interaction E.g. applying via an online form
Level 1. The entire ongoing customer relationship E.g. being the customer of an online bank
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Descriptive metrics are about what happens, for example which steps a user goes through, or how many users click through on a banner.
…and three types of metrics
B
A C
Descriptive metrics Experience metrics Outcome metrics
Experience metrics are about how it was perceived, i.e. the users’ perception and feeling of what happened. For example, how satisfied a user is with a product, or what he associates with the brand.
Outcome metrics are about what we as a business get out of it. For example higher sales or lower costs, or other things that lead to either of those.
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Defining metrics for each experience
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1. There should be a logical hierarchy of metrics
2. Outcome metrics should align with key business drivers
3. Perception metrics should reflect quality attributes from brand and customer experience strategy
4. Descriptive metrics should relate to what affect customer perceptions the most
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Overall CX
Metrics in a relational framework
(examples)
Transactions
Accounts opened
Product registrations
Time on hold
Use of help function
Task time
Negative sentiment in social media Call hang-ups
Etc.
Right items available
Key information available
Help available
Quick order
Clear information
Help accessible
Empathic CSR
Visually appealing website
Pleasant store ambiance
Meets needs
Easy
Enjoyable
Journey satisfaction
Proxy outcomes (e.g. Net Promoter Score,
likelihood to deflect, revenue at risk)
Actual outcomes (e.g. repurchases, churn
rates, EBITDA, new leads)
Descriptive metrics What happened
Experience metrics How was it perceived
CX attributes (examples)
CX quality / brand attributes
(examples)
Overall perception of experience
Outcome metrics What we get out of it
as a business
Source: Forrester Research, Creuna research and methodology
Journey satisfaction
Journey satisfaction
Surveys at interaction, journey and experience levels with e.g. Qualaroo, Questback. Qualitative research through e.g. interviews, social media, call center logs, observations etc.
Operational tracking e.g. Web Analytics, CRM, data from products & software
Business intelligence systems, e.g. CRM, ERP,
DSS. Surveys.
…
(examples)
Typical data sources and analytics tools à
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Peter’s back.
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This time, he’s out to buy his first house. He’s a bit uncertain about the mortgage, though, so he goes online.
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Online mortgage calculator Customer service on Facebook
Two features trigger his interest…
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The framework applied
Proxy: Effect on
overall NPS, likelihood of repurchase
Actual: Economic
value added
Descriptive metrics What happened
Experience metrics How was it perceived
Outcome metrics What we get out of it
as a business
Source: Forrester Research, Creuna research and methodology © Creuna
Bounce rate Unfinished forms
abandoned Applications
received
Avg. time to reply Share of
problems resolved Positive sentiment
Mortgage calculator Use of help / chat
Time on hold
Customer service
Had my expected information
Help quickly available
Task completion
Quick completion
Clear information
Effective auto fill
Confident to continue
Service feel
Foresighted tone of voice
Effectively meets needs
Seamless experience
Service & action-or.
experience
Journey satisfaction
rate
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start small!
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1 segment
2 journeys
4 interactions
Make it a mantra to define which..
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..are the most important
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© Creuna
Acme Bank
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7 steps to successfully measuring CX
Source: Based on Forrester Research, Creuna research and methodology. Image Courtesy: Gratisography
Choose customer segments 1
Select which experiences to measure 2
Pick CX metrics for each experience 3
Design a data collection strategy 4
Set targets for each CX metric 5
Identify and act on CX issues 6
Share insights gained from CX measurement 7 © Creuna
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Our five basic colours Yellow, Blue, Red, Green and Grey
These are the colours we use for backgrounds
Darker colours You’re basically free to use the different
saturations of the colours, but we still recommend these second to darkest ones
thanks for listening! Kristoffer Okkels, Senior Digital Business Consultant Simon Kibsgård, Lead Digital Business Consultant
[email protected] [email protected]
+45 22 49 83 39
© Creuna
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+45 22 49 83 41