Customer Experience Management

Assessment
CRM or CEM

CRM
 Relationship marketing
 Customer obsession
 Retention
 Customer delight
 Satisfaction
 Loyalty
 Customer intimacy
 Direct marketing
 360° View
CEM
• Acquisition management
• Customer analysis
• Segmentation
• Customer value
• Commitment
• Profitability
• Proposition containment
• Relationship needs
• Exit management

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A definition – CEM

Customer Experience Management is:

The way that companies design what they do so that

they deliver the right customer experience to acquire,
retain and develop their target customers, efficiently, in a
way which is mutually rewarding to their customers, their
employees and their shareholders.

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The scope of CEM

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The scope of CEM

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Put simply - it’s about ‘Tilting the line’

Investment in
managing the
customers

What CEM tries

to achieve

Where many
organisations
are now

Value of customers

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What is our CEM-Check ?

 An assessment approach
– Objective assessment of how an organisation manages its
customers
– Evidence-based
– Scored across multiple dimensions
– Against a clear model that can be used on an ongoing basis
– Forms a clear start point from which to measure improvement
 A benchmarking tool
– Over 650 assessments on the benchmark database
– Each clients’ benchmarks individually created
 A planning tool
– Provides prioritised recommendations for improvement
 A change tool
– Can be deployed on line for learning and best practice
sharing

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The CEM-Check dimensions

 Intention
– Clear plans that have been
effectively communicated and
widely bought into
 Reality
– Evidence of full
implementation and full
adoption

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CEM-Check overview

 Assesses against the whole

customer management model
but in less depth
 Examines 100 practices
 Interviews with 8 to 10 people
 Takes an elapsed 3 to 4 weeks
 Two dimension scoring
 Delivers a standard report
against 13 sections
 Suitable for multiple business
unit assessments

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 The types of scores being achieved
 Overall average score is just 35%
 Best score is 67%, worst is 17%
 To be top quartile you only need to score 41%
 Quartile scores by section of the model look like this:
Analysis and planning
100
External environment The proposition
80
The customer experience 60 People and organisation
40
20
Measuring the effect Customer Information
0

Penetration Technology Support

Efficiency Process management

Retention Acquistion

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What the scores are telling us

Year Average score

 Overall, things are not really
improving over time 1999 33%
2000 33%
 Best scores are also the 2001 32%
most well rounded scores 2002 33%
2003 34%
 There are clear but not huge sector 2004 35%
variations
 There are clear but not huge region variations
 Senior Managers over-estimate what is going on
 Big benefits still available but expectations need to be
realistic
 Analysts are taking notice of CEM performance

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Who is using it

AA

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CEM Assessment Approach

Planning

Preparation

Interviews

Assessment completion

Report

Feedback presentation

Follow-up

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Resource required for a CEM check

Phase

Pre-sales support 0
Planning & Preparation 2
Interviews 3
Assessment completion 1
Report 1
Recommendations 1
Presentation 1
Admin and follow-up 0

TOTAL 9

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‘Vanilla’ role list for the CEM check

– CRM Leader
– Business Analyst
– Marketing planner
– Product Manager
– HR Manager
– Technologist
– Direct sales
– Indirect sales
– Campaign owner
– Service owner
– Call centre agent
– Researcher

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The Mind Map
analysis & Plans
strategy Vision
segmentation Organogramme Vision/ documentation documentation
work analysis Planning
MEASURES & KPIS Strategy for next
steps
ANALYSIS &
plans & process PLANNING
maps major issues
forseen
TECHNOLOGY & training
PROCESS

CHannel
RElated activity measures

PEOPLE &
OPERATIONS ORGANISATION/
OWNERSHIP
Simple
Org charts/
communication
change plans
of proposition
Research
reports Segmented
proposition
Interview related
what want as
outcome? Roles
CUSTOMER CUSTOMER VALUE Relay findings. description
EXPERIENCE PROPOSITION KNOWLEDGE &
INFORMATION
Ref databases
CUSTOMER & forums &
processes
Example MANAGEMENT
programmes ACTIVITY

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Answering dimensions - Intention

Full commitment and All relevant groups and management teams are
detailed plans completely committed to doing this. There is a clear
strategy in place and detailed plans exist with
appropriate budgets agreed.
Full commitment and some All relevant groups and management teams are
plans completely committed to doing this. There is a
developing strategy and the early stages of detailed
planning have started.
Full commitment but no All relevant groups and management teams are
real plans completely committed to doing this. A budget may have
been agreed but no planning work has started yet.

Some commitment and Some of the relevant people are committed to doing this
some plans but not all. There will be some level of plans in place and
may be some piloting work.

Little or no commitment Very few people who have the ability to make this
and plans happen are committed to doing so and no plans exist to
make it happen.

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Answering dimensions - Reality
Fully implemented This has been implemented completely in all the
places within the organisation where it needs to be.

Substantially This is either nearing completion in all the places

implemented where it is needed or is fully implemented in most of
the places.

Implementation in There is clear evidence that implementation will be

progress fully completed but it is only part way through being
implemented at the moment.

Some isolated There are places where this has been implemented
implementation but it is not part of an overall full implementation and
may stop with just those places where it was
observed.

No real implementation There is little evidence of implementation in any of the

places where it needs to be completed.

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Overall scope and its sub-sections

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The sub-sections on question set 1

Analysis & Planning Proposition People & Organisation

 Customer  Understanding  Leadership,
Management customer organisation and
Strategy needs culture
 Analysis Activity  Proposition  Competencies and
 Retention planning development training

 Efficiency planning  Integration with  Monitoring and

the brand measurement
 Acquisition
planning  Embedding the  Motivation and
proposition reward
 Penetration
planning  Outsourcing

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The sub-sections on the question set 2

Acquisition Retention Efficiency

 Targeting  Welcoming &  Cost-to-serve
 Conversion Getting to management
Know
 Winback
 Delivering the Penetration
basics
 Value development
 Retention
activity
 Managing
dissatisfaction

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The sub-sections on the question set 3

Customer Experience Measurement External Environment

 Driving the  Overall  Competitor
customer customer understanding
experience management  Benchmarking
 Understanding metrics
satisfaction and  Measuring
loyalty customer
 Customer think and management
feel activity
 Channel and
media
measures

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The sub-sections of the question set 4

Processes Information Technology

 Ongoing process  Building customer  Current technology
management information capability
 Process  Managing  Exploitation of new
improvement customer technology
information  Management of
 Security and technology resources
privacy
 Customer
knowledge
management

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