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Tag Archives: CJM

Customer Analytics: Walking in the Customers Shoes

In the first blog in this series on customer analytics, the technique of Customer Journey Mapping (CJM) was discussed as a way to follow how customers move from one touch point to the next, and track their emotional well-being during those interactions. In the last blog I described how using a persona to represent a group of customers would allow marketing to get a better understanding of customers. In this blog I will explore how Customer Journey maps can be created for persona to visualize an idealized journey for the group represented. This is now becoming a well-accepted technique for not only improving user experience in software design, but also in the design of products, digital and conventional marketing channels, architecture and many other areas.

There are two basic approaches for creating persona. One is to base the persona on in-depth research of the customers within a market segment, and the other is to base the persona on intuition, sometimes referred to as a provisional persona. In reality, it makes most sense to use a combination of research and intuition, and then verify the persona with those who have front line contact with customers. Generally customers belonging to a company’s biggest market segment would be targeted first and a primary persona is created to represent them. If the team creating the persona do not have direct knowledge of the customers in that segment then they will need to conduct research to understand the values and motivations of the group.

Once a persona has been defined then it’s possible to look at how the company would engage that persona in a sale, and the hope is that the persona would follow each engagement at every touchpoint, even long after they’ve made the purchase and are using the product. The framework for this is known as the Customer Lifecycle. There are many versions of this but they all share some basic stages, as described by Jim Sterne and Matt Cutler in a paper called “E-metrics, business metrics for the new economy

  • Reach: Trying to get the attention of the people we want to reach.
  • Acquisition: Attracting and bringing the reached person into the influence sphere of our organization. 
  • Conversion: When the people we reach or have a more established relationship with, decide to buy something from us.
  • Retention: Trying to keep the customers and trying to sell them more (cross-selling, up-selling).
  • Loyalty: We would like the customer to become more than a customer: a loyal partner and even a ‘brand advocate’ Moments of truth

This can be represented either horizontally or in a circular lifecycle type chart

The Customer Life Cycle – Source: E-Metrics Business Metrics for the New Economy by Jim Sterne and Matt Cutler

The persona journey describes how it’s anticipated that a particular persona would move through the lifecycle. It would describe the channels through which it’s expected they are made aware of a product, how it’s expected they would research the product and what would motivate them to make a decision to buy. Key points in the journey where customers decide whether to continue or abandon the process are known as ‘Moments of Truth’, a term coined by Jan Carlzon, the well-known CEO of SAS Airlines who turned the company around in just a couple of years.

Walking in the customers shoes in this way is not easy, and would normally be done as a workshop with representatives from across an organisation, but it’s an exercise that can provide many useful insights. Service quality gaps, cross channel alignment, ways to better engage customers and align internal teams are just a few of the many benefits that come from journey mapping. When idealised journey maps are compared with the actual journeys that customers take then many preconceived ideas about how customers see and engage with the company may get thrown out and fresh ways to engage, retain and acquire new customers be discovered.

In the next part of this customer analytics based series of blogs I will be looking at the security implications of big data and advanced customer profiling, and how regulators around the world are trying to protect an individual’s right to be treated equally by large corporations.

Mark Jenkins

Mark Jenkins has worked in the IT industry for over 15 years as a BI and Analytics consultant, and more recently as ROC Product Manager for Subex Ltd. He has designed and deployed solutions for global companies in many sectors including Insurance, utilities and telecommunications. Mark holds a BSc Hons in Computer Science from Manchester University (UK).

A Sentimental Journey

When Doris Day sang the jazz classic ‘Sentimental Journey’ she described the joy of returning home to the things she had missed. Back here in the 21st century we also feel a sense of joy when we get home, but it’s often because we can finally get a reliable internet signal through our Wi-Fi.   Mails download, WhatsApp messages pour in and all those photos and vids we took get uploaded to share.   The sentiment that people feel when they get home and find their internet service is not working is generally far less happy. It’s a sentiment that I experienced first-hand, having suffered from a service that was slower than old fashioned dial-up for several months. Web pages with sliding graphical widgets and targeted advertising completely stopped loading. After endless rounds of calling support, listening to distorted 80’s pop tunes while stuck on hold, and re-booting of modems I just didn’t want to speak to them anymore. In today’s marketing vernacular, I was not having a good “customer experience”, so I left them and went to another service provider.

Although the initial buzz around customer experience may have died down from a few years ago it is still regarded as the single most important ingredient needed to have a successful business. In a recent report Watermark Consulting studied the cumulative stock returns of the top 10 “Leaders” and bottom 10 “Laggards” in Forresters CX index and found

Leaders outperformed the broader market, generating a total return that was 35 points higher than the S&P 500 Index.

Laggards trailed far behind, posting a total return that was 45 points lower than that of the broader market.

In a world of commoditized products and services businesses now rely on customer experience more than ever to differentiate themselves from the competition. However, in the report ‘Customer Analytics: How to make Best use of Customer Data’ the Aberdeen Group has reported that

96% of companies are not fully satisfied with their ability to use data (both customer and operational) in CEM programs’

In order to provide good a customer experience companies need to do 5 things

  1. Introduce good data governance practices around customer data
  2. Create a unified view of customers across all touch points
  3. Profile and segment their customers
  4. Track the emotional impact of a customer interactions with the company over time.
  5. Use that intelligence to guide agents on how to provide the best support for customers.

Enter the world of the customer journey map. A customer journey map (CJM) is a visual representation of all the interactions a customer has with a company, through every touch point, with a measure of the customer’s attitude towards the company during those interactions. For example, receipt of a bill may be a negative experience, whereas receipt of some reward, like bonus loyalty points, would be viewed more positively. These sentiment scores may be collected directly through touch point surveys and recording call dispositions, or inferred based on history and through the use of analytics.

Agents that have an immediate grasp of a customer’s journey and level of satisfaction are far more successful at resolving issues and upselling than agents who do not have that insight.

The first step in understanding a customer’s journey is to introduce good data governance practices and create a unified view of the customer. The Aberdeen group also observed (in their ‘Big Data in CEM’ study) that

More than half of all (56%) businesses lack a unified view of the data captured across multiple channels and stored in systems such as customer relationship management (CRM), marketing automation, e-commerce and enterprise resource planning (ERP)

Customers should then be profiled and segmented along demographic, financial and behavioral lines. Then, by recording their changing sentiments during various interactions with the company, a picture can be built up of how different segments progress through their customer journeys and it becomes possible to understand which interactions lead to greater customer loyalty and value, and which lead to churn.

Customer journey mapping helps companies to understand their customer needs and provide the kind of personal advice and support that builds trust.   Trust that encourages customers to buy more, stay loyal and spread good news about your business.

Mark Jenkins

Mark Jenkins has worked in the IT industry for over 15 years as a BI and Analytics consultant, and more recently as ROC Product Manager for Subex Ltd. He has designed and deployed solutions for global companies in many sectors including Insurance, utilities and telecommunications. Mark holds a BSc Hons in Computer Science from Manchester University (UK).

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