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The Great CX Guide

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The great CX guide. Key findings from the October 2015 report, Customer experience in the digital age, from Harvard Business Review Analytic Services, sponsored by Verizon.


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Customer experience in the digital age Proprietary statement. This document and any attached materials are the sole property of Verizon and are not to be used by you other than to evaluate Verizon’s service. © 2015 Verizon. All Rights Reserved. The Verizon name and logo and all other names, logos, and slogans identifying Verizon’s products and services are trademarks and service marks or registered trademarks and service marks of Verizon Trademark Services LLC or its affiliates in the United States and/or other countries. All other trademarks and service marks are the property of their respective owners.


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Customer experience in the digital age Customer experience (CX) is key to achieving a competitive edge. 47 of respondents say CX is a top-two differentiator for their business. Source: “Customer experience in the digital age”, a 2015 Harvard Business Review Analytic Services report, sponsored by Verizon.


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Customer experience in the digital age And CX isn’t just important to B2C companies. B2B organizations also put it in their top two. B2C B2B 49% 38% CX CX 49% 67% Product/service quality Product/service quality Source: “Customer experience in the digital age”, a 2015 Harvard Business Review Analytic Services report, sponsored by Verizon.


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Customer experience in the digital age International director of sales, marketing and product systems, global publishing company Source: “Customer experience in the digital age”, a 2015 Harvard Business Review Analytic Services report, sponsored by Verizon. “ “ Power has shifted to the consumer because of access. They choose the experience they want to have with us. It has to be both compelling and efficient.


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Customer experience in the digital age But few companies get it right. Just 48% of the respondents who say CX is a top-two differentiator say they are doing very well in this area. These are best-in-class organizations. Source: “Customer experience in the digital age”, a 2015 Harvard Business Review Analytic Services report, sponsored by Verizon.


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Customer experience in the digital age For those that do get it right, the payoff can be huge. 56% of best-in-class organizations say they’ve gained market share because of excellent CX. Source: “Customer experience in the digital age”, a 2015 Harvard Business Review Analytic Services report, sponsored by Verizon.


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Customer experience in the digital age The best-in-class see substantial improvements in customer satisfaction. 72% say likelihood-to-recommend scores have increased in the last two years. 72% say overall satisfaction scores have increased in the last two years. 68% say retention/repeat purchase rates have increased in the last two years. Source: “Customer experience in the digital age”, a 2015 Harvard Business Review Analytic Services report, sponsored by Verizon.


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Customer experience in the digital age How can you join the best-in-class?


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Customer experience in the digital age LE SE T ST AR CT Top 3 barriers to CX improvement. LE T Cultural resistance from employees to the changes in working practices needed to realize great digital CX. SE ST AR Organizational silos that stop key stakeholders — such as marketing and IT — working together to deliver great CX. CT PRO2000 Inflexible, outdated technology that can’t support the latest CX innovations in mobile and social.


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Customer experience in the digital age Digital drives great CX. 64 of best-in-class organizations strongly believe that the effectiveness of technology is as important as the effectiveness of their people to delivering great CX. Source: “Customer experience in the digital age”, a 2015 Harvard Business Review Analytic Services report, sponsored by Verizon. TAXI


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Customer experience in the digital age Digital enables an omnichannel experience. New technology is enabling new channels — such as social media and mobile — that provide more ways of engaging customers. It’s also helping to create a unified, seamless CX, across all channels.


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Customer experience in the digital age Aim for consistency across all channels. 43% of best-in-class organizations say quality of service is consistent across all channels, compared with just 10% of underachievers. There’s room for improvement across the board. Source: “Customer experience in the digital age”, a 2015 Harvard Business Review Analytic Services report, sponsored by Verizon.


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Customer experience in the digital age Aim for a personalized experience. Best-in-class organizations are focusing on providing a richer, more personalized CX. Underachievers are still focusing on self-service.


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Customer experience in the digital age Digital enables organizations to improve insight into customer behavior.


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Customer experience in the digital age Best-in-class organizations are ahead with their use of customer analytics and big data. Still, only 23% of best-in-class organizations have integrated customer data across their various channels for a single customer view. Source: “Customer experience in the digital age”, a 2015 Harvard Business Review Analytic Services report, sponsored by Verizon.


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Customer experience in the digital age Even best-in-class organizations find it hard to keep pace with digital change. Just 21% of best-in-class organizations say they are able to quickly adapt their CX to emerging technology trends. Source: “Customer experience in the digital age”, a 2015 Harvard Business Review Analytic Services report, sponsored by Verizon.


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Customer experience in the digital age To keep pace, best-in-class organizations are investing in: • Simplifying and standardizing technology and networking infrastructure. • New CX innovations that sit on top of this infrastructure.


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Customer experience in the digital age If you want to meet customer expectations, you need to tackle the hard things. This means overcoming cultural barriers and organizational silos. Key stakeholders need to work together to deliver the change needed to realize great CX that meets customer expectations in the digital age.


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Customer experience in the digital age In the digital age, the relationship between the CMO and CIO is key to the success of any CX strategy. The CMO leads digital CX strategy. The CIO is responsible for choosing the technologies that enable it. 45% of best-in-class organizations say the CMO and CIO are well-matched partners who collaborate productively for a common goal. That compares to 26% of underachievers. 45 Source: “Customer experience in the digital age”, a 2015 Harvard Business Review Analytic Services report, sponsored by Verizon. %


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Customer experience in the digital age SVP at drug distribution company Source: “Customer experience in the digital age”, a 2015 Harvard Business Review Analytic Services report, sponsored by Verizon. “ “ This is about continuous improvement. It’s not a project — we won’t ever be done.


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Customer experience in the digital age To find out how you can improve CX to achieve competitive advantage in the digital age, read the full report: www.verizonenterprise.com/hbrcx


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© 2015 Verizon. All Rights Reserved. The Verizon name and logo and all other names, logos, and slogans identifying Verizon’s products and services are trademarks and service marks or registered trademarks and service marks of Verizon Trademark Services LLC or its affiliates in the United States and/or other countries. All other trademarks and service marks are the property of their respective owners. PTE16549 11/15


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