Multichannel in a complex world

The proliferation of devices and channels has brought new challenges to just about every organisation in delivering consistently good customer experiences and effectively joining up service provision with marketing activity, data and content. A good multichannel strategy and execution is increasingly becoming essential to marketers and customer experience professionals from every sector. This report seeks to identify the key issues, challenges and opportunities that surround multichannel and provide some best practice insight and principles on the elements that are key to multichannel success. As part of the research for this report, we spoke to six experienced customer experience and marketing practitioners from large organisations across different sectors. In Multichannel Marketing: Metrics and Methods for On and Offline Success, Akin Arikan (2008) said: ‘Because customers are multichannel beings and demand relevant, consistent experiences across all channels, businesses need to adopt a multichannel mind-set when listening to their customers.’ It was clear from the companies interviewed for this report that it remains challenging for many organisations to maintain consistency across so many customer touchpoints. Not only that, but the ability to balance consistency with the capability to fully exploit the unique attributes of each channel remains an aspiration for many. The proliferation of devices and digital channels has added complexity to customer journeys, making issues around the joining up of customer experience and the attribution of value of key importance to many. Whilst senior leaders within the organisations spoken to seem to be bought in to multichannel, this buy-in was not always replicated across the rest of the organisation and did not always translate into a cohesive multichannel strategy. A number of companies were undertaking work around customer journey mapping and customer segmentation, using a variety of passive and actively collected data in order to identify specific areas of poor customer experience and create action plans for improvement. Others were undertaking projects using sophisticated tracking and tagging technologies to develop an understanding of the value and role of specific channels and to provide better intelligence to the business on attribution that might be used to inform future investment decisions. A consistent barrier to improving customer experience is the ability to join up many different legacy systems and data in order to provide a single customer view and form the basis for delivery of a more consistent and cohesive multichannel approach. Whilst there remain significant challenges around multichannel, there are some useful technologies allowing businesses to develop better insight into customer motivation and activity. Nonetheless, delivery of seamless multichannel experience remains a work-inprogress for many

Multichannel integration evidence from the States and a review of the field

Members of the Henley Centre for Customer Management requested a report on the status of multichannel marketing. The focus of the research examines best practice examples from the United States and a detailed review of the field. The research was conducted over the summer of 2012 and identified over 240 quality articles for inclusion in the review. Using systematic review methodology a number of key themes and respective indicators emerged from the field. Results of the study identified common multichannel platforms, tools that assist management in determining high-quality multichannel decisions, features of consumer behaviour, successful investment decision-making processes, channel optimisation and a review of consumer expectations of a multichannel marketing world

B2B customer experience factors: understanding the relationship with SME customers – interim report

As part of the 2014 programme, our members asked us to extend the research done in 2013 (“Measuring Customer Satisfaction And Understanding Customer Effort In A B2B Context” - Tony Harrington and Andrew Bryan) to incorporate the SME customer sector. This project was set up to explore customer experience factors in the SME segment and to address a number of questions:- What are the most important factors that contribute to the customer experience from both the supplier’s and the SME customer’s perspectives? From the customer’s perspective, what about the relationship with the supplier requires the ‘most’ or ‘least’ effort and what changes do customers suggest? Where a customer has both a personal and a business relationship with the supplier, how does this impact their views? The approach was to develop an online survey for completion by SME customers and their supplier. Initially, seven companies and the Henley SME Forum volunteered to participate in the research. However, it proved to be extremely difficult to go from agreement to be involved to actually getting survey responses and, in the event, the survey achieved the following result:- A good response was achieved from 2 companies with around 40 SME responses for each company. A poor response was achieved from 1 company and from the SME Group so their data is currently of limited value. There were other companies that would still like to participate and there are 3 offers to participate at a later date. Analysis of the responses showed that useful conclusions could be made from the data collected so far but that it would be more valuable if more companies were persuaded to participate in the future. As a result, this report has been prepared as an interim statement of what has been learnt and to provide specific feedback to the participating companies. With member’s permission, further responses will be sought at a later date to refine the learning and provide feedback to more companies. This report presents the results of analysis from the survey on a company-by-company basis. Most of the data is only relevant at company level but consolidated results are shown where possible. The results from the analysis of responses lead to a number of initial conclusions. SME companies look to their suppliers to deliver against their promises in a responsive, consistent and proactive manner. Their priority is to have their problems solved in a timely manner. Relationship factors are more important in the B2B relationships between large companies than for SME’s. The SME customer is much more interested in just having the service performed with a minimum of fuss and doesn’t really want to develop a relationship. Questions about customer effort (or the ease of doing business) are as valuable in the SME segment as in any other in terms of identifying opportunities for improvement. Businesses should consider whether their SME customers might also be a customer in their personal home life. If so, they should be aware that this will have an effect on their satisfaction – and could be either positive or negative

How collaborative innovation and co-creation can deliver value: a stakeholder approach

This project explores how collaborative innovation and co-creation between stakeholders can deliver value for firms. In today’s increasingly competitive and fast-changing global marketplace, firms must seek to develop more frequent and higher quality innovations (Ngugi et al, 2010). In addition, customers, employees and other stakeholders are demanding opportunities to co-create and collaborate with businesses more and more. As Ramaswamy (2010) comments: “Providers of products and services are challenged by customers who are increasingly informed, connected, networked and empowered. Customers, employees and stakeholders are demanding higher quality interactions and experiences from businesses and a deeper engagement in the value-creation and service delivery processes” (Ramaswamy, 2010, pp. 22). Given this increasing need to collaborate, innovate and co-create, firms need a better understanding of how they can engage in these activities in a way that maximises the value created for all stakeholders; this project, through exploratory, qualitative research interviews and a wide-ranging literature review, seeks to make a contribution in this area

Exploring online community participation

Firm-hosted online brand communities, in which consumers interact regarding brand-centric topics, represent a fascinating context to study the motives of participation within the community. Theories of social capital and collective action are extended to begin understanding why individuals contribute, as they receive no immediate benefit, and “lurkers” have the same access to that contributed knowledge as everyone else. Building on the concept of means-end chain, that is we seek out certain attributes as a means to achieve a desired end state, the linkage between online brand community attributes, individual need, and personal values is ethnographically examined. By way of in-depth laddering interviews, why individuals participate will be answered through understanding how that participation fulfils individual need and enhances personal value. The main study comprises two approaches – participant observation in the community, and individual in-depth interviews with 32 community members. Over 2222 data points and 750 ladders were discovered and analysed using the laddering technique. Seven themes emerged as to why individuals actively participate in an online brand community – belonging, recognition, helping others, knowledge, professional advancement, personal development, and entertainment

Manging the multichannel customer experience

This report studies best practice in crafting and profiting from the multichannel customer experience, through in-depth study of major multichannel projects at First Direct, IBM, BT Global Services and General Motors Europe. Findings were also informed by interviews with boutique hotel chain Eton Collection; DVLA; UK Trade and Investment; a high street retailer; and a financial services company. Rather than thinking of each customer as belonging to a particular channel, there are many benefits to be gained in terms of both cost and customer experience by treating different transactions differently. BT Global Services has replaced 400 field sales staff by desk-based account managers who deal with simpler sales, considerably reducing the cost of sale. IBM diverts any sale of less than £50,000 to the teleweb channel. We describe the coverage map tool which helps to think this through. There is much cost to be saved in diverting customers to lower-cost channels, but only if we carry the customer with us. That tends to mean creating win-wins through channel combinations – making appropriate use of low-cost channels, but making personal contact available at points in the customer journey where it is needed. First Direct has boosted profits considerably by diverting 80% of transactions online – without harming satisfaction. Channel chain diagrams and the channel choice chart can help to get the balance right. Indirect channels – agents, distributors, retailers – can also be brought into the multichannel customer journey. But this means bringing indirect channels into the data loop - sharing customer data with them to provide an integrated experience. BT has rolled out its CRM system to major distributors. General Motors works with dealers to provide an integrated customer dialogue, resulting in 17,000 incremental car sales in a pilot project. Most organisations have inherited channel silos in which each channel is a profit or cost centre. But this does not reflect the reality of customer journeys which cross multiple channels. Structure and rewards need to reflect the multichannel customer journey. One approach is to attach a financial value to a lead generated in one channel but fulfilled in another – we saw this working successfully in a high-street retailer. Another approach is to organise around customers. BT Global Services has account directors responsible for revenue and sales and marketing costs irrespective of channel

Tailoring propositions for fairness and equality: case studies and best practice

In recent years, there has been an increasing level of focus on the service provided to customers in vulnerable circumstances, with a view to improving customer experience and the longer-term outcomes achieved. Anyone could become vulnerable and the psychological and financial impact of not treating vulnerable customers fairly can be considerable because a vulnerable customer is less likely to be able to represent their own interests and more likely to make a poor decision. We explore some examples, by means of case studies, and include: • Sainsbury’s – ‘Slow shopping’ • The Science Museum – Providing access to all • HomeServe – Customer first • Barclays Bank – Culture of understanding • Public Libraries – Digital inclusion • KLM Royal Dutch Airlines – Socially aware robots • Muir Group Housing Association – Providing bespoke services to vulnerable people. We also examine best practice and provide recommendations for organisations to consider