The Customer Experience / Customer Advocacy Connection

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Event: How to be Customer Obsessed in B2B Presentation by Bob Peterson, SiriusDecisions Presented at 1871 Chicago, August 6, 2014

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1.Bob Peterson Research Director @bobpetersonmn The Customer Experience/Customer Advocacy Connection 2. 2 What You Will Learn During this Session How the changing buyers journey makes customer advocacy more critical than ever Proof that customer experience and advocacy are essential to business growth Secrets from successful advocacy teams 3. Customer Experience is the New Demand Creation Why Creating Customer Advocates is a Growth Strategy 4. 2013 SiriusDecisions. All Rights Reserved 4 5. Customer Experience Is the New Demand Creation 1 2 3 4 5 Time LevelofInteraction 1. Awareness 2. Consideration 3. Purchase 4. Ownership 5. Repurchase If post-sale experience is negative This mountain becomes steeper. 5 6. SiriusPerspective: 2014 SiriusDecisions. All Rights Reserved 6 What We Heard: Customer Experience Is Key to Growth Our study shows a clear link between higher growth and the presence of a customer experience function with the proper focus and investment. The customer experience growth connection: Share of b-to-b companies with a customer experience function that plan to grow more than 10 percent this year54% 82% that have a chief customer officer 49% that invest more than 15 percent of marketing budget on existing customers 74% that make the CCO accountable for revenue growth from existing customers 7. SiriusPerspective: 2014 SiriusDecisions. All Rights Reserved 7 What We Heard: Experience Investment Delivers Results Compared to their average-growth peers, high-growth companies see improvement in critical areas more often. Higher retention rates 57% 47% Higher response rates from customers 66% 47% Revenue growth 55% 43% Higher loyalty/Net Promoter scores 48% 32% Higher customer profitability 43% 32% HighGrowth AverageGrowth Where b-to-b sees experience investment impact 8. SiriusPerspective: 2014 SiriusDecisions. All Rights Reserved 8 64% of b-to-b companies DO have a customer experience function BUT What We Heard: Still Work to Do On Customer Experience Even when companies have a customer experience function, they dont always optimize its role and impact. 36% of b-to-b companies DO NOT have a customer experience function are not seeing greater advocacy or references75% do not conduct experience mapping57% do not measure by retention and profitability38% 9. 9 Customer Marketing Is a Priority for CMOs Social media is a skill every marketer should have. The customer experience begins before they are a customer and kicks into high gear once they become one. The investment in marketing technology is requiring a new skill set in marketing. Digital Marketing Content Marketing Marketing Technology Customer Marketing Social Media #1 #2 #3 #4 #5 Comments Advocacy must play a leading role in marketings transformation to strategic partner 10. SiriusPerspective: 2014 SiriusDecisions. All Rights Reserved 10 Conventional Wisdom: The Linear View of Experience The sphere of experience expands as buyers become customers, but it only improves with a cohesive approach. 1. Reputation 2. Inbound content 3. Influencers 4. Peers 1. Web Properties 2. Outbound touches/content 3. Events 1. Sales/marketing process 2. Selling team 3. Trials/demos 1. Solutions 2. Service/support 3. Finance 4. Community Strong Alignment Segmentation Demographics Personas Strong Alignment Lead level Scoring Messaging Strong Alignment SLAs Enablement Pipeline accel. Weak Alignment No Process No Agreement No Coordination Experience Target Prospect Opportunity Customer Alignment 11. SiriusPerspective: 2014 SiriusDecisions. All Rights Reserved 11 Reality Check: Customer Experience Isnt One-Size-Fits-All Multiple customer roles and lifecycle stages mean the post-sale experience is not a simple add-on to the buyers journey. 1. Solutions 2. Service/support 3. Finance 4. Community Customer Deliver Develop Retain Grow COMPANY RESPONSIBILITY Initiate Participate Actualize Advocate CUSTOMER EXPERIENCE 12. SiriusPerspective: 2014 SiriusDecisions. All Rights Reserved 12 Experience Today: Execution Without Coordination Alignment works during the buyers journey, but when buyers become customers, the complexity increases significantly, as do the stakes. Initiate AdvocateParticipate Actualize Deliver Develop Retain Grow Sales Service Marketing Product No 13. SiriusPerspective: 2014 SiriusDecisions. All Rights Reserved 13 The Venn Approach to Customer Experience Each function must excel in its own area and be coordinated to create an optimized customer experience. Sales Service Product Marketing Customer Experience 14. 2014 SiriusDecisions. All Rights Reserved 14 The Business Case for Customer Experience Investment Look at your own numbers: Whats it worth to Retain 1 percent more of your base? How about 5 percent? What is the impact on revenue growth and profit? Reduce customer support demand by 5 percent? Ten percent? Improve product/service engagement by 10 percent? More? Increase customer lifetime value by length (e.g. stay one more year) and/or revenue/profit (usually related)? Reduce cost of sale by .5 percent by making renewal easier and leveraging advocates? Increase selling time by 5 percent for growth activities? 2013 SiriusDecisions. All Rights Reserved When you understand and improve the levers of loyalty, its easier and less expensive to grow. Advocacy is key. 15. Customer Advocacys Future: The Customer Experience-Advocacy Connection 16. The Future of Advocacy 2013 SiriusDecisions. All Rights Reserved 16 Customer advocacy is your UNFAIR competitive advantage 17. 17 Customer Experience Is Key to Closing Deals Source: SiriusDecisions 2013 persona study of C-level buyers 80 percent of a CXOs final decision is based on their own or others experience with your company 18. Brand (Sum of Customer Experience) Helps Sales Productivity 52.1% 33.3% 42.5% 46.2% 39.2% 47.4% 34.8% 43.0% 28.2% 36.2% 51.6% 42.5% 46.2% 50.0% 46.1% 50.0% 48.4% 55.3% 0% 20% 40% 60% 80% 100% CEO CFO CIO CISO CMO COO CSO LOB HR Significant Moderate Low None 89 percent of CXOs say their perception of a vendors brand moderately to significantly influences their short-list creation. 19. 19 More Advocates Mean More Growth Companies with a higher NetPromoter Score (i.e., more advocates) significantly outperform peers in revenue growth 20. Secrets of Successful Customer Advocacy Teams 2013 SiriusDecisions. All Rights Reserved20 21. One: Customer Advocacy is a Strategic, Planned Contribution Sales references Influencer/analyst relations Videos Public relations/press releases Case studies Customer awards Success stories Customer visits, Executive briefings Communities Customer events Advisory boards Partner support Voice-of-the-Customer research Customer data/insights Social media RFP support Search marketing Customer webcasts BUYING CYCLE Retain Phase Develop Phase Deliver Phase Grow Phase ActualiseParticipateInitiate Advocate CUSTOMER LIFECYCLE 22. Two: Customer Advocacy is About Making the Customer a Hero 23. Three: Advocacy Is Linked to Financial Impact Be specific about the role of advocacy on the path to revenue and gain credibility for its impact 24. Four: Advocacy Sourcing is an Art and a Science 25. Five: Technology Helps Advocacy Scale 26. How Can You Make a Case for Strategic Advocacy Investment? 1. Track results in a clear and credible way: Who, what, when and why, all linked to growth 2. Know your audience for reporting: Communicate consistently and appropriately 3. Remember its not about you: Focus on sharing customer success in ways they find valuable 4. Make advocacy a resource: Focus on meeting needs of sales and partners in ways that matter 5. Join the team: Connect with other functions to coordinate advocacy activities and show value 6. Do more: Let technology help the team scale and focus on high-value activities 27. Thank You! 27

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