Gartner Customer Experience & Technologies Summit

22 – 23 May 2019 / London, UK

The Basics of
Customer Experience

Michael Chiu

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The Basics of Customer Experience

1. What is customer experience?

2. What are the core pillars of a customer experience

management program?

3. What are the primary tools needed for customer

experience management?

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 What Is Customer
Experience?

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Customer Experience Is Not …

• …the same as customer service

• …another name for user experience
• …just a new term for CRM
• …a technology to be bought
• …the same thing as a digital strategy

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Gartner Definitions

• Customer Experience (CX): “The customer’s perceptions and

related feelings caused by the one-off and cumulative effect of
interactions with a supplier’s employees, systems, channels
or products.”

• Customer Experience Management (CEM/CXM): “The practice of

designing and reacting to customer interactions to meet or exceed
customer expectations to increase customer satisfaction, loyalty
and advocacy.”

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Customer Experience Is Outside In, Not Inside Out

Inside:
Outside:
Organization
Customers Goals
Needs Opinions Feelings Beliefs Incentives Policies
Systems Products
Uses Interactions Expectations Wants
Talent Capabilities
Past experiences Desires
Technology Org Structure
Business Processes
Resource Allocation

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 What are the core
pillars of a customer
experience
management
program?

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Four Pillars of Customer Experience Management

01 Understand Customers
02 Develop CX Strategy
03 Build a Customer-Centric Culture
04 Design the CX
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Four CX Pillars and Nine CX Maturity
Model Dimensions
Voice of the Customer
01 Understand Customers Customer Insight
Metrics

02 Develop CX Strategy Purpose

Strategy

Build Customer-Centric
03 Culture
Roles and Governance
People and Org. Change

Personas and Journeys

04 Design the CX Technology

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New Customer Experience Maturity Model 2019

1%
4% 1%
B2C
B2B 30% 3%
33% 15%
32% 30%
50%

Ad Hoc Establishing Performing Optimizing Embedded

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Four CX Pillars and Nine CX Maturity Model
Dimensions in Detail
Build Customer Listening Portfolio
Voice of the Customer
01 Understand
Customers
Customer Insight
Metrics
Analyze Customer Data
Communicate Customer Understanding
Measure Customer Experience

Communicate Vision to Execs.

Develop
02 CX Strategy
Purpose
Strategy
Prove the ROI

Choose Where to Play and How to Win

Prioritize CX Improvement Opportunities

Build Customer-
03
Manage CX Team Structure
Roles and Governance Build CX Team Capabilities
Centric Culture People and Org. Change Collaborate With Business Partners
Foster a Customer-Centric Mindset
Enable Customer-Centric Behaviors

04 Design the CX
Personas and Journeys
Technology
Personas
Customer Journey Maps
User Experience and Testing

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 What are the
essential tools
needed for customer
experience
management?

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Essential Tools for Customer Experience

1. Voice of the Customer Program

2. Personas
3. Customer Journey Maps and Analysis
4. Customer Experience Strategic Plan
5. Measuring Customer Experience

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Essential Tools for Customer Experience

1. Voice of the Customer Program

2. Personas
3. Customer Journey Maps and Analysis
4. Customer Experience Strategic Plan
5. Measuring Customer Experience

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Consolidate the Voice of the Customer

Direct Indirect Inferred

• Survey/Poll • Tweet • Web

• Complaint • Email/Chat • Contact Center
• Market Research • Call Recording • Store
• Forum/Panel • Agent/Engineer Notes • Home

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Singapore Changi Airport Is Customer-Centric

World’s best while being one of Innovative uses of technology to Every case tracked under a
the world’s busiest enhance the customer experience common system

Stress-Free Positively Surprising

Personalised To provide customer peace
Every customer is unique To create good memories in
every customer
To serve Be Welcoming To Deliver of
Bemind
Knowledgeable To Satisfy Be Involved
vs. Be Interested vs.To Be Resourceful vs. Be Enthusiastic
To engage Be Attentive Anticipate Be Responsive To Delight Be Creative

“We put the passenger, the user, the customer at the centre of everything.”
— Tan Lye Teck, Executive Vice President
Source: Changi Airport Group, Salesforce
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Essential Tools for Customer Experience

1. Voice of the Customer Program

2. Personas
3. Customer Journey Maps and Analysis
4. Customer Experience Strategic Plan
5. Measuring Customer Experience

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 How can you design
better customer
experiences without
first clarifying who
you’re designing for?

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A persona is a semi-fictional representation of your
most valuable customers including their wants,
needs, goals and mindsets.

Personas help you step out of your shoes and into

your customer’s.

See things as your customer would.

What’s best for him/her?
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Segments vs. Personas

Segment Persona

• Useful for: • Useful for:

– Establishing an overview of a customer base. – Understanding customers on a personal level.

– Classifying various types of customers into – Delineating psychographic elements of a

specific groupings. customer base.
– Tailoring messages, products, and services to a – Cutting across segments and unifying them into fewer
unique customer base. market targets.
• Some data points used for segmentation include: • Some data points used for personas include:
– Demographics – Behaviors

– Purchase Behaviors/Buying Patterns – Attitudes

– Preferences – Journeys

– Affiliations

Source: Gartner

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Persona Template Example

Persona Builder Template Age, Income and Education

Daily Responsibilities
Persona Name:

Preferences
Short Bio:

Key Attributes

Hypothesized Jobs: Functional and Emotional Needs

Key Challenges

Source: Gartner

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Medical Device Company: Persona Example
Name: Dave Age: 65
Job: Retired; ex-government
Role: Recent Retiree
Education: College
Quote(s): “Since retiring, I’m looking forward to
Gender: Male
spending time with family, traveling, and
my woodworking” Marital/Family Status: Married
Goals/Motivators: People in My Life: Who I Spend Time With Tools/Products/Services Used:

Family, children, grandchildren, friends Mobile phone, FaceTime with grandchildren, cable
Eating/Sleeping/Exercising
living nearby TV, internet, AAA

People in My Life: Who Takes Care of Me? Wants/Needs:

Challenges
Wife, two sons Take continuing education classes, write a book

Maintaining a healthy heart My Environment: Preferred Method of Learning/Information Gathering

At home, road trips throughout the U.S. Brochures, in-person discussions

Current Solution Ex-Med. Device Co.
Daily Responsibilities/Activities: Comfort with Technology:
Starting conversations
Woodworking, jogging Medium
Image source: Pexels

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Informing Personas With Facts and Data

Source: Gartner

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Essential Tools for Customer Experience

1. Voice of the Customer Program

2. Personas
3. Customer Journey Maps and Analysis
4. Customer Experience Strategic Plan
5. Measuring Customer Experience

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 Stop thinking about your customers.

Start thinking LIKE your customers.

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There Are Many Possible Customer Journeys

Source: Gartner Research

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Example Customer Journey Mapping Template
What is the
Step/Stage 1 Step/Stage 2 Step/Stage 3 Step/Stage 4 Step/Stage 5 Step/Stage 6
customer doing?

What is the
customer expecting?

What is the customer

thinking? Questions?

What is the
customer feeling?

With which
touchpoints is the
customer interacting?

Stage Stage 1 Stage 2

What are the customer’s
goals for this stage?

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Customer Journey Map Example: Riding the
Subway/Train

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Subway/Train Persona
Name: Age: 35
Emily
Job: Operations Manager, utility company
Role:
Mother, wife, daughter, friend,
Education: Bachelor’s, master’s degrees
successful professional
Gender: Female
Quote(s):
“I feel like I’m constantly running short of Marital/Family Status: Married
time, energy, and sleep.”
My Environment: Tools/Products/Services Used:
People in My Life: Who I Spend Time With
The office, at home, in
iPhone, laptop, Uber, Amazon
car commuting
Husband, two kids, dog. Extended family
and friends — evenings and on Wants/Needs:
Goals/Motivators: the weekend.

Daily Responsibilities/Activities: Balance in my life

To be there for my family when they
need me, advance my career, be Managing multiple teams at work, ensuring Preferred Method of Learning/Information Gathering
a good friend, keep stress to smooth operations, talking to husband
a minimum and children.
Visual learner (reading)

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Image source: pexels
Customer Journey Map Example:
Emily Taking the Train to Her Meeting
What is Passes through Find and go to
Looks at map Purchases ticket Wait for train Board train
Emily doing? station gate train platform

To quickly and
What is Emily Easy to Within a certain Gate to open after Train to An orderly
easily find
expecting? read/understand price range ticket is inserted arrive soon boarding process
the platform

What is Which train Am I going to

How do I get How much will my Will the gate Is there still room
Emily platform do I need arrive on time at
where I’m going? ride cost? accept my ticket? to sit?
thinking? to be at? my destination?

Impatient —
Sense of
What is wants to get to Eager to get
accomplishment Disoriented, lost Anxious Rushed
Emily feeling? her destination to destination
— ticket in hand
ASAP

With which
touchpoints Map, subway Gate machine, Subway station Train status
Ticket machine Train car
is Emily station interior help booth signage, platform update screen
interacting?

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The Work Forward Approach:
Use Diagnostics to Identify Opportunities
Customer Journey Which Step(s) in Your Customer Immediate Solution Experience
Step(s)
Map Diagnostic Journey Map … Fixes Improvements Innovations

AI interface
answers
Redesign map
… require the customer to expend Understanding Mobile app as an questions about
Customer Effort based on
the most effort? the map alternative to map map and directs
feedback
customers where
to go

… are the most painful for the Show vacant

Pain Points/ Not getting a Add one Reserved seats
customer? Where are the seats on outside
Emotional Lows seat on subway additional car and tiered pricing
emotional lows? of each car

Real-time map
…require a customer to wait for a “Next subway
Waiting for showing all Add subways
long time? …involve wait times arriving in [X]
Wait Times subway to subways, until wait times
that generate customer minutes”
arrive locations, and cut by 50%
dissatisfaction? announcements
time to arrival

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The Work Backwards Approach:
Do a Gap Analysis
What is Emily doing?
What is Emily
expecting?
What is Emily
thinking? Questions? Current State
What is Emily feeling? Customer Journey Map
With which
touchpoints is
Emily interacting?

How to close the gap?

What is Emily doing?

What is Emily expecting?

What is Emily thinking?

Questions? Future, Ideal State
What is Emily feeling? Customer Journey Map
With which touchpoints is
Emily interacting?

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Essential Tools for Customer Experience

1. Voice of the Customer Program

2. Personas
3. Customer Journey Maps and Analysis
4. Customer Experience Strategic Plan
5. Measuring Customer Experience

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CX Strategic Plan Structure

Demand CX Strategic Plan Supply

Resources Behavioral
Strategic Needed Guidelines
Pillar 1
Current
Current CX
Roles and
Capabilities
Ideal
Channels Responsibil-
Customer Customer Strategic ities
Prioritization
Needs Experienc Pillar 2
e

Roadmap and Success

Project Plans Metrics
Strategic
Pillar 3
Communi- Recognition
cations and Competitor
Plan Incentives CX

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CX Strategic Plan Structure

Demand CX Strategic Plan Supply

Resources Behavioral
Easy Needed Guidelines

Current
Current CX
Roles and
Capabilities
Ideal
Channels Responsibil-
Customer Customer ities
Prioritization Intuitive
Needs Experienc
e

Roadmap and Success

Project Plans Metrics
Seamles
s
Communi- Recognition
cations and Competitor
Plan Incentives CX

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Essential Tools for Customer Experience

1. Voice of the Customer Program

2. Personas
3. Customer Journey Maps and Analysis
4. Customer Experience Strategic Plan
5. Measuring Customer Experience

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Clients Tell Us How They Measure CX

Measuring Customer Experience 2018

Percentage of respondents

Customer satisfaction scores 62

Product or service quality metrics 48
Employee engagement 46
On-time delivery 43
Repeat orders 41
Return rates 35
Customer effort score 30
First call resolution rates 30
Willing to be reference customer 28
Churn rates 25
Net promoter score 25
Other 1
0 10 20 30 40 50 60 70
Base: All respondents, excludes unsure, n=203
To the best of your knowledge, how does your organization currently measure customer experience?
ID: 355012
Source: “Customer Experience 2018 Benchmarks: Turning Return on Investment Into Reality” (G00355012)

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Three Approaches to Customer
Experience Metrics

Consolidate all relevant metrics into a customer experience

dashboard (most common).

Show a hierarchy with low-level operational metrics as well as higher-

level CX metrics for executives.

Create a customer experience index by combining a series of

different weighted metrics.

Source: How to Manage Customer Experience Metrics

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Refreshed 12 March 2018, Published 20 May 2015 — ID G00268913
Ed Thompson
Customer Experience Dashboard Example
Metrics/KPIs
Employee Absenteeism Job Understanding Perception of Work Conditions
Employee Employee Satisfaction Glassdoor Score
Relationship With Colleagues
Engagement Employee Voluntarily Work Relationship With Boss
Recognition by Organization
Outside Formal Hours Career Opportunities
Delivery Timeliness Product Reliability Shipping Defect Rates
Quality Accuracy of Inventory and Pricing Customer Data Quality Process Adherence
Operations End-to-End Transaction Times Product Return/Recall Rates Network QOE
Number of Support Requests Mean Time Between Failure Security Breaches
Product Review Ratings Service Satisfaction Score Complaint Resolution Rate
Customer First-Call Resolution Rates Call Abandon Rate Customer Effort Score
Satisfaction No. of Product/Service Upgrades Mystery Shopper Scores Incidents Rate
Cart Abandonment Rate Process Satisfaction Product Satisfaction
Loyalty Program Enrolled Average Customer Tenure No. of Repeat Orders
Loyalty Use of Multiple Channels Product or Service Usage Customers “Likely to Defect”
Churn Retention Purchase Frequency Loyalty Program Participation Adoption of New Products
Customer Attrition/Churn Rates Renewal Rate Deactivation Rate
Net Promoter Score Brand Perception (Recognition, Website Usability Benchmark
Advocacy Brand Customer Referrals Credibility, Relevance, Influence) Sentiment Score
Reputation Trust Rating Number of Brand Advocates Social Network Participation
Price Sensitivity Reputation Rating Brand Value

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How Do Customer Experience Metrics Link? The
Service-Profit Chain Methodology
Employee
Engagement

Quality
Operations

Customer
Satisfaction

Loyalty Churn
Retention

Advocacy Brand
Reputation
Source: Harvard Business Review, March-April 1994

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Who Measures the Customer Experience?

Employee
Engagement
• Human Capital Management
< 10%
• Process Improvement
Quality
Operations
•
•
Product Engineering
Network Operations
< 50%
Customer Customer
• Customer Service/Complaints

Experience Satisfaction
•
•
Product/Service Design
Market Research
> 95%
• Churn/Retention
Loyalty Churn
Retention
• Referrals/Customer Refs. > 90%
• Loyalty Management (Excluding Public Sector)

• Marketing Communications
Advocacy Brand
Reputation
•
•
Advertising
UX Development
> 70%

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The Importance of Managing Down: A Hierarchy
of Customer Experience Metrics
Roles Supported Use

Level One:
Business
Outcomes
1 C-suite executives
(CEO, COO, etc.)
Measures organizational
maturity and sustainability of
a customer-centric culture

2
Level Two: Measures performance of
Strategic Levers CX leaders, cross-functional customer
and Macro Performance CMO, CCO experience efforts

Diagnoses cross-functional

3
Level Three: CX managers and issues and opportunities in
Operational Levers team members order to plan and prioritize CX
and Diagnostics projects and investments

Measures CX performance of

4
Level Four: Operational departments, team, regions
Tactical Levers leaders across and other divisions of
and Optimization organization the organization

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Create a Hierarchy of Metrics: One Example

1 to 2 highest-level metrics that the

1 to 2 board can identify with

3 to 6
3 to 6 top-line customer experience management metrics

5 to 15 process metrics that tie in to the most important

5 to 15
processes for the customer

n=?
A much wider array of operational metrics that may
impact the customer experience

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Case Study: Finastra Assigns Customer Health
Index to Touchpoints With Clear Ownership
Awareness Solution Proof Partner
and Consideration Assessment of Solution Engagement Purchase

76 60 80 62 57

63
Post-Sales
Solution Training and Renewal Recommend
Implementation Communication and Repurchase and Endorse
Support

72 47 91 55 25

Instead of a NPS score, Finastra uses the Customer Health Index to monitor client health — based on a multitude of
real-time cross-functional measurement criterias by identifying the critical client touchpoints along the customer life cycle.
Source: Finastra
Metrics included in the Customer Health Index (CHI)

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The Basics of Customer Experience
What is customer experience?
• Outside-in not inside-out

What are the core pillars of customer experience management program?

• Understand customers
• Develop a CX strategy
• Build a customer-centric culture
• Design customer experiences

What are the primary tools needed for customer experience management?
• Voice of the customer program
• Personas
• Customer journey maps and analysis
• Customer experience strategic plan
• Measuring customer experience
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 Don’t let your quest for
perfection impede your
path to progress

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Recommended Gartner Research

 How to Prioritize Customer Experience Projects

Michael Chiu and Ed Thompson (G00367104)
 How to Manage Customer Experience Metrics
Ed Thompson (G00268913)
 Use Customer Experience Quick Wins as Momentum for High-Impact
Programs

Michael Chiu (G00370273)

 Creating a High-Impact Customer Experience Strategy
Customer Experience Research Team (G00705782)
 How to Run a Do-It-Yourself Customer Journey Mapping Workshop
Michael Chiu and Jason Daigler (G00377419)
For information, please contact your Gartner representative.
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